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Section 26 of the Income-tax Act, 1961 - Income from house property - Co-owners - Assessment year 1990-91 - Where a number of persons purchased land for construction of shops and their respective shares were ascertainable, income from property was to be assessed in hands of each of co-owners separately and not in hands of AOP [In favour of assessee] Eight persons, including the assessee, had purchased a land. The purchase by each of the 8 persons was effected by separate registered deeds. The area of land purchased and investment made therein was also different in respect of 8 persons. All the 8 persons applied separately to the prescribed authority for approval of construction of shops and separate maps were submitted. However, all the 8 persons started construction jointly and a consolidated map was prepared for the whole area. They decided to share 1/8th of the rental income derived from the income of property. The assessing authority held that the income from property was assessable as income of the association of persons. The Tribunal held that the value of the commercial property was not to be assessed in the hands of the assessee as an AOP but in the hands of the co-owners. Held that under section 26 where property consisting of buildings or buildings and lands appurtenant thereto is owned by two or more persons and their respective shares are definite and ascertainable, then such persons cannot be assessed in respect of such property as an association of persons but the share of each such person in the income from the property has to be computed in accordance with sections 22 to 25 and is to be included in the total income of such person. Applying the provisions of section 26 to the facts of the instant case, it was found in the instant case that the respective shares of income were ascertainable and, therefore, were to be assessed individually. The Tribunal had not committed any illegality in doing so. CASES REFERRED TO CIT v. Aggarwal Market [IT Appeal No. 53 of 2003, dated 26-7-2007] (All.) and CWT v.Anil Aggarwal [WTR No. 134 of 1999, dated 12-7-2007] (All.). JUDGMENT 1. The Income-tax Appellate Tribunal, Delhi has referred the following two…

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