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TMI Blog2025 (1) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Appellate Tribunal misdirected itself on facts and in law in assuming that the appellant/assesse is equal owner of the subject property?" 3. On facts, the parties do not appear to be in disputation and as would emerge from the order of the Tribunal, the issue of income arising from residential premises itself arose in the context of a search which was conducted and an assessment under Section 153A of the Income Tax Act, 1961 [Act] which ensued. The Tribunal has found that the property situate at J-278, Saket, New Delhi, was in the joint ownership of the appellant and her husband and had been acquired on 08 March 2011. 4. In the course of assessment, the appellant before us was placed on notice to answer a query as to why income from the said property be not charged to tax in her hand under the head of 'income from house property'. The appellant appears to have asserted that the property is essentially owned by the spouse and that her name appears in the instrument solely for and in light of a contribution of INR 20,00,000/-, which was paid by her in A.Y. 2011-12. This explanation was not accepted by the AO, who proceeded to hold that the property would be liable to be viewe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A) has also recorded the finding in para 4.1.5 of his appellate order that the assessee was joint owner of the property alongwith her husband and that the sale deed did not specify the percentage of ownership. It was for this reason that the Ld. AO held the assessee to be 50% owner of the property. The Ld. DR also highlighted the fact that the ownership in the property is determined as per the mutation record and the sale deed nowhere specified the share of the co-owners. We are inclined to agree with the stand taken by the Ld. AO/CIT(A) and the Revenue that the sale deed only speaks of the joint ownership of the property by the husband and wife without specifying their definite and ascertainable share in the property. Moreover, the total cost of the property J-278, Saket, Delhi stated before the Ld. AO during assessment proceeding in reply submitted by the assessee on 10.12.2019 does not match with the sale consideration paid as per the sale deed executed on 08.03.2011. Therefore, the claim of the assessee that she is joint owner of the property to the extent of 5.4% only is baseless as the facts and circumstances of the case do not support this claim. *** 16. In the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e new Act. We may also state that the whole of Section 9 of the old Act has been split up and redrafted into several separate sections, namely, Sections 22 to 27 under the new Act. 24. We have noticed the reliance placed by the Bar on the decision of this Court in Jodha Mal case which was concerned with the old Section 9 (1) of the Act. In that case, this Court had occasion to consider the meaning to be given to the words "of which he is the owner". Of course, on facts the Court was called upon to decide whether the erstwhile admitted owner of the property is liable to pay income tax on the house property under Section 9 even after the said property has been vested in the Custodian of Evacuee Property by virtue of Section 6 (1) of the Pakistan (Administration of Evacuee Property) Ordinance, 1949. The contention of the Revenue in that case was that notwithstanding the vesting of the house property in the Custodian, the legal ownership remained with the assessee therein and, therefore, Section 9 (1) of the old Act was attracted. This contention was repelled by this Court. Hegde, J., speaking for the Bench observed at page 575: (SCC p. 372, para 9) "The question is who is the ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jodha Mal case. 27. In the Kala Rani case the Punjab and Haryana High Court after referring to the judgment of this Court in Jodha Mal case observed as follows: "Thus, it cannot be accepted that before a person can be assessed under Section 22 of the Act, he must be the owner by virtue of a sale deed in his favour. As a matter of fact, what is being taxed under Section 22 of the Act is the income from house property or the annual value of the property of which the assessee is the owner" 28. The High Court rejected the contention that the mere possession of the property in pursuance of an agreement to sell was not sufficient to burden the assessee with tax on any income under Section 22 of the Act. *** 55. 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... daughter, shall be deemed to be the owner of the house property so transferred; (ii) the holder of an impartible estate shall be deemed to be the individual owner of all the properties comprised in the estate; [(iii) a member of a co-operative society, company or other association of persons to whom a building or part thereof is allotted or leased under a house building scheme of the society, company or association, as the case may be, shall be deemed to be the owner of that building or part thereof; (iiia) a person who is allowed to take or retain possession of any building or part thereof in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882), shall be deemed to be the owner of that building or part thereof; (iiib) a person who acquires any rights (excluding any rights by way of a lease from month to month or for a period not exceeding one year) in or with respect to any building or part thereof, by virtue of any such transaction as is referred to in clause (f) of section 269UA, shall be deemed to be the owner of that building or part thereof;] (iv) [* * *] (v) [* * *] (vi) taxes levied by a local ..... 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