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2015 (5) TMI 1254 - ITAT DELHICorrect head of income - Taxing the rental income from property - income from house property or Income from other sources - real owner of property - assessee stated to have been received property as gift from her father - AO did not accept the ownership of flat of the appellant therefore, assessed the receipt of stated rent under the head "Other Sources" and disallowed statutory deduction u/s 24 (30% towards repairs) and payment of Municipal taxes - According to the ld CIT(A) the transfer of the house property is not in accordance with law because the Gift Deed of immovable property was not registered by payment of stamp duty HELD THAT:- As decided by Smt. Kamla Sondhi [2004 (2) TMI 741 - DELHI HIGH COURT] under the common law, owner means a person who has got valid title legally conveyed to him after complying with the requirements of law such as the Transfer of Property Act, Registration Act, etc. But, in the context of section 22 of the Income Tax Act, having regard to the ground realties and further having regard to the object of the Income Tax Act, namely, to tax the income, we are of the view, owner is a person who is entitled to receive income from the property in his own right. We find that the Ld CIT(A) got carried away by the judgment of Suraj Lamps and Industries Pvt. Ltd. (2011 (10) TMI 8 - SUPREME COURT), wherein, SC delivered the judgment in a different context and highlighted the well settled law on the importance of registration of property as per the Registration Act and frowned upon the menace of transaction being done of immovable property by General Power of Attorney and the said case has nothing to do with the Income Tax Act 1961, which we are dealing with. However we find that the aforesaid order of the Hon’ble High Court of Delhi bolsters the case and claim of the appellant. Since there is no dispute that income/rent from the flat No-21, Hope Apartments, Sector-15, Gurgaon is received by the assessee/ appellant then as per the Income Tax Act, owner is the person who is entitled to receive income in his own right. Respectfully following the order of the Hon’ble High Court in the case of CIT vs. Smt. Kamla Sondhi (Supra) as held by the Hon’ble Supreme Court in Poddar Cement (supra), we set aside the order of the revenue authorities and decide the issues in dispute in favour of the assessee.
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