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TMI Blog2015 (1) TMI 1189X X X X Extracts X X X X X X X X Extracts X X X X ..... ining consideration amount of Rs. 2,25,000/- was to be paid at the time of execution of the sale deed. Under the agreement to sale, the seller-Shri Baijnath Agarwal handed over the vacant possession of the land and building constructed thereon to the revisionist and also executed an affidavit to that effect. On 31.10.1986 the revisionist applied to the General Manager, District Industries Center Agra for provisional registration of the proposed SSI unit and on 1.12.1986 the provisional registration was granted showing the address of the unit as Naraich, Hathras Road, Agra. The new unit commenced trial production on 1.12.1986 and the first sale took place on 23.12.1986 and therefore it is claimed that the revisionist is entitled for exemption from payment of trade tax for a period of 5 years w.e.f. 23.12.1986 to 22.12.1991. The revisionist preferred an application under Section 4-A of the Act for the grant of eligibility certificate which was initially recommended by the District Level Committee but was subsequently cancelled by the Divisional Level Committee. Aggrieved by the said order the revisionist filed a review application on 3.4.1992 which was rejected on 21.12.1992. The re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lease' to be on the same footing when the applicant is already in possession by virtue of registered agreement to sale. In my opinion the question of law would have to be re-framed to read as to : "whether the Tribunal was wrong in ignoring the date of ownership accruing from the date of entry into possession with effect from 20.10.1986 i.e. the date of registration of the agreement to sale and when the petitioner came into possession of the property in question for the purposes of determining the ownership as being the first date for grant of exemption?" Section 4-A (5) of the Act and the explanation thereto read as under: "4-A (5) A manufacturer shall be entitled to the facility of exemption from, or reduction in the rate of tax, notified under sub-section (1), - (a) ?......... (b) ?......... (c) in relation to a new unit referred to in Explanation (1), where the conditions specified in Clauses (a) to (d) of the said Explanation (1) are fulfilled on a period of facility notified under sub-section (1), then subject to the provisions of Clause (b), only for part of the period, notified under sub-section (1), which shall be computed from the date on which all the conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g scheme of the Act and resorting to contextual and purposive interpretation, also having reviewed several conflicting decisions of different High Courts, held that the liability to be assessed was fixed on a person who receives or is entitled to receive the income from the property in his own right. vide para. 55, this court has held (page 653): "We are conscious of the settled position that 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 realities 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." The Supreme Court has further held as follows: "Podar Cement's case [1997] 226 ITR 625 (SC), is under the Income-tax Act and has to be taken as a trend-setter in the concept of ownership. Assistance from the law laid down therein can be taken for finding out the meaning of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not executed by the Housing Board in favour of the assessee, but the houses were allotted to the assessee by the Housing Board, part payment received and possession delivered so as to confer dominion over the property on the assessee whereafter the assessee had in its own right allotted the quarters to the staff and they were being actually used by the staff of the assessee. It is common knowledge, under the various schemes floated by bodies like housing boards, houses are constructed on a large scale and allotted on part payment to those who have booked. Possession is also delivered to the allottee so as to enable enjoyment of the property. Execution of documents transferring title necessarily follows if the schedule of payment is observed by the allottee. If only the allottee may default the property may revert back to the Board. That is a matter only between the Housing Board and the allottee. No third person intervenes. The part payments made by allottee are with the intention of acquiring title. The delivery of possession by the Housing Board to the allottee is also a step towards conferring ownership. Documentation is delayed only with the idea of compelling the allottee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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