9911796707
TMI Blog1986 (7) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Bhagwant Singh, S. Khushwant Singh, Brig. Gurbax Singh and S. Daljit Singh as its coparceners. On9-6-1947, the properties belonging to this HUF, both movable and immovable, and immovable were partitioned as per deed of partition dated9-6-1947. In terms of the said deed of partition, the property commonly known as Scindia House,New Delhifell to the share of S. Khushwant Singh and Brig. Gurbax Singh, in the portion of half share each. Since the property known as Scindia House came to S. Khushwant Singh and Brig. Gurbax Sing on account of partition of the HUF mentioned supra it became joint family property in their hands. This being a joint family property the son of S. Khushwant Singh, i.e., Shri Rahul Singh and wife of Shri. Kushwant Sing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of tenants and symbolic possession of the said property hereby agreed to be conveyed of such last mentioned portion in possession of the vendors has been delivered to the purchaser at the spot at the same time. This addition agreement to sell provided that henceforth the rent of the property as payable by all the tenants herein shall be received and recorded by the purchaser. It was also provided that the purchaser shall be entitled to make agreement for sale or may enter into agreement to sell whole or any portion of the said property. 5. On the execution of this additional agreement to sell the purchaser agreed to pay a sum of Rs. 69 lakhs and paid the said amount by a bank draft dated 26-2-1979, drawn on New Bank of India Ltd., Conn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e absence of exaction of the conveyance deed and its registration. The assessee projected to the ITO that he had invested one-sixth share of sale proceeds of Scindia House in FDR to yield interest. If the income from Scindia House was to be taxed in the hands of the assessee to the extent of one-sixth then interest earned by the assessee on FDRs should excluded from the total income. The ITO did not accept this plea of the assessee. He assessed the assessee at income of Rs. 35,623 under the head 'Income from house property' from Scindia House as per last year. The ITO also did exclude as Rs. 32,078 being the interest on FDRs from the total interest of Rs. 53,064. The amount of Rs. 32,078 was, thus, taxed under the held 'Income from other so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n fact, as mentioned above, the interest on FDRs of Rs. 8 lakhs for the year under appeal was only Rs. 32,078 as mentioned in the impugned order of the ITO dated30-11-1982. 8. Now, the revenue is aggrieved with the direction of the learned Commissioner (Appeals) to reduce the interest by an amount of Rs. 35,623. The grievance of the assessee is that the learned Commissioner (Appeals) erred in confirming the addition of Rs. 35,623 as rental income in the hands of the assessee even thought the assessee was no in possession and enjoyment of the property. 9. We have heard the parties and very carefully considered the rival sub-mission. The facts are not in dispute. Even the quantum of the income from house property is not in dispute. The only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on its own facts and the facts show that but for the execution and registration of the transfer deed, the property had been sold. Consideration had been received. The physical possession had been handed over. In such circumstances, we are of the opinion that provision of section 53A of the Transfer of Property Act, 1882 are applicable. The vendors, therefore, could not be taxed with regard to the income from house property mentioned in the agreement to sell. However, the assessee having put his part of the sale proceeds in fixed deposits, the interest so earned will be taxable in his hands as income from other sources. We are convinced, with due respect, that we get full support for our above decision from the judgment of the Hon'ble Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e property may umlaut to double taxation, the Hon'ble Court observed that 'in any case, this objection on the ground of double taxation cannot apply in a case of the present type where, we think the 'legal' owner of the property may not be assessable at all on the principal of R. B. Jodha Mal Kuthiala's case. We, therefore, direct that in the hands of the assessee only income from interest earned on FDR for the year under appeal amounting to Rs. 32,078 is taxable and be taxed. The ITO included income from the house property at Rs. 35,623. We delete that amount from the total income of the assessee and direct that entire interest of Rs. 53,064 which includes the sum of Rs. 32,078 be brought to tax under the head 'Income from other sources'. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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