TMI Blog1987 (1) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... construction of a first floor and the amount advanced shall be treated as a loan given by them to the assessee and clause 4 of that agreement provided that after the completion of the first floor it shall be leased to the parents by the assessee for starting a handicraft show room. When the construction was completed, a lease agreement was executed on 1-6-1979 by which the assessee agreed to lease the entire first floor to his parents for a period of 10 years on a monthly rent of Rs. 3,000. The lease deed also provided for a sub-lease by the parents. On 10-9-1979, the parents entered into two lease deeds subletting the first floor of the building to the Punjab National Bank in two portions on monthly rent of Rs. 5,700 and Rs. 2,700 totallin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has taken an additional ground to contend that the assessee was not the owner of the premises at all since only a licence was granted to the parents to construct the first floor with their own money and the amount of Rs. 3,000 received was in respect of that licence which has been duly returned as income of the assessee and hence there could not be any assessment or a notional income from the property. On the other hand, it was contended on behalf of the revenue that since the first floor was constructed on the ground floor belonging to the assessee, it became the property of the assessee as and when it was constructed and it was too late in the day for the assessee to contend that it was not his property at all. 5. On a consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be the property of the parents and not that of the assessee. The only implication was that the amount invested was treated as a gift to the assessee and the obligation of the assessee to repay the money was cancelled. The test that we can apply to find out whether the assessee or the parents were the owner of the first floor is to see whether on the basis of the documents the assessee could himself let out the first floor. We find that the is nothing in the lease deed dated 1-6-1979 to prevent the premature termination of the lease and the assessee could let out the property himself. Since it is the assessee who is entitled to receive the rent for the property, we find that it was the assessee who was the owner of the first floor of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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