TMI Blog1989 (4) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... for liquidation were started. During the pendency of the proceedings, to discharge debts owed to its directors, the company passed a resolution on January 27, 1978, to give the building of the company to the directors. The resolution was approved by the shareholders on January 28, 1978. On January 31, 1978, the company recorded in its accounts that with effect from February 1, 1978, the building w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iving the rent. The Income-tax Officer decided the matter against the company and so did the Appellate Assistant Commissioner. When the matter came to the Tribunal, it took notice of the decision reported as Smt. Kala Rani v. CIT [1981] 130 ITR 321, of this court in which a converse proposition was being propounded by the Revenue, and decided the matter in favour of the company and observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the building on March 17, 1964, and got possession but the sale deed was executed only on April 11, 1969. In the returns filed for the assessment years 1968-69 and 1969-70, the assessee did not include the income from the property agreed to be purchased on the ground that he had become an owner thereof, vide sale deed dated April 11, 1969, during the accounting year 1969-70, relevant to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome received by a person who was in occupation of the property but did not possess title and here the Department wants to tax a person who has given up possession on the basis of the agreement after squaring up the debt payable against the value of the building. This cannot be permitted. Following the aforesaid decision, we hold that for all intents and purposes, the directors were the owners of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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