TMI Blog2015 (5) TMI 1254X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d no. 4. 6. On the facts and circumstances of the cases, the Ld. CIT(A) has erred in rejecting the contentions raised in ground no. 2 3 by the appellant. 2. The facts in brief are that the assessee has shown income under the head Capital Gains , House Property , and Other Sources in her Return of Income (ROI). The assessee has stated that she had not maintained any regular books of accounts in accordance with the provisions of section 44AA,of the Income Tax Act,1961(herein after the Act), as she was not required to do so. The income from house property from Flat No. 21, Hope apartments, Sector - 15, Gurgaon is being shown by assessee since the Assessment Year 2007-08 onwards and this house property, a flat in the Co-operative group housing society allotted by such society to her father, has been stated to have been received as gift from her father. However, till date, this flat did not get transferred in the appellant's name, though all requisite details have been stated to have been filed, before the Co-op. society. The AO did not accept the ownership of flat of the appellant; therefore, he assessed the receipt of stated rent under the head Other Sources . A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cument has been executed. Registration provides safety and security to transactions relating to immovable property, even if the document is lost or destroyed. It gives publicity and public exposure to documents thereby preventing forgeries and frauds in regard to transactions and execution of documents. Registration provides information to people who may deal with a property, as to the nature and extent of the rights which persons may have, affecting that property. In other words, it enables people to find out whether any particular property with which they are concerned, has been subjected to any legal obligation or liability and who is or are the person/s presently having right, title, and interest in the property. It gives solemnity of form and perpetuate documents which are of legal importance or relevance by recording them, where people may see the record and enquire and ascertain what the particulars are and as far as land is concerned what obligations exist with regard to them. It ensures that every person dealing with immovable property can rely with confidence upon the statements contained in the registers (maintained under the said Act) as a full and complete account of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered before this day, they may be relied upon to apply for regularization of allotments/leases by Development Authorities. We make it clear that if the documents relating to 'SA/GPA/WILL transactions' has been accepted acted upon by DDA or other developmental authorities or by the Municipal or revenue authorities to effect mutation, they need not be disturbed, merely on account of this decision. 19. We make it clear that our observations are not intended to in any way affect the validity of sale agreements and powers of attorney executed in genuine transactions. For example, a person may give a power of attorney to his spouse, son, daughter, brother, sister or a relative to manage his affairs or to execute a deed of conveyance. A person may enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings and in that behalf execute an agreement of sale and grant a Power of Attorney empowering the developer to execute agreements of sale or conveyances in regard to individual plot of land or undivided shares in the land relating to apartments in favour of prospective purchasers. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it (vide Ambica Quarry Works v. State of Gujarat, AIR 1987 Supreme Court 1073). In my considered view, the principles enunciated in the cases relied upon by the Ld. Counsel do not render any help to the appellant in the facts and circumstances of the present case because the appellant's case is held to be distinguishable on facts. 5.4 Keeping in view the facts and discussion in foregoing pages, I am of the considered view that the stated rent is not assessable as income from the house property in the hands of the appellant as the appellant is not the owner of the property in accordance with the provisions of section 22. The rental income from the property under reference, according to me, is assessable in the hands of Shri B. R. Gupta, father of the appellant as section 60 gets attracted here because the income from the property under reference has been transferred without legal transfer of that property to the appellant. Therefore, the disallowances made in impugned order are held justified and thus sustained. 5. Against aforesaid impugned order of the Ld. CIT(A), assessee is in appeal before us. 6. At the threshold, Ld. Counsel of the assessee has submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried away by the judgment of Hon ble Supreme Court in the case of Suraj Lamps and Industries Pvt. Ltd. (Supra), wherein, the Hon ble Supreme Court 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 by accepting the Appeal of the assessee. 9. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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