Law:

Section:

Section 22, read with sections 28 and 56 of Income-tax Act, 1961 - Income from house property - Chargeable as - Assessment years 1966-67 to 1968-69 - Assessee obtained leasehold land from Government and set up bustees thereon, constructions put up therein being structures with no foundation but with light plinth or floors and walls of wooden planks or corrugated sheets - Assessee claimed that income from such construction was income from business or, alternatively, income from other sources but not income from property - ITO assessed income under head 'property' - Tribunal held that structures in bustees not being of a temporary character, they constituted buildings, and if assessee was treated as owner of buildings on leasehold, then income therefrom was assessable under head 'property' - Whether since term of a lease, being a building lease, provided that ownership of structure to be built remained vested in lessee while ownership of site remained in lessor, lessee would still be assessed in respect of income from such structure as income from property - Held, yes - Whether, therefore, assessee's income in question was rightly assessed under section 22 - Held, yes FACTS The assessee-company was formed with the objects, inter alia of acquiring land, developing the same, making constructions thereon and dealing with them. The assessee, after obtaining land on long-term lease from the Government, set up bustees thereon, the constructions put up by the assessee therein being structures with no foundations but with light plinth or floors and walls made of planks of unseasoned indigenous wood or corrugated sheets fixed on frames of bamboos or local wood. The assessee claimed that the income from such constructions on the said land was income from its business or, in the alternative, income from other sources but not income from property. The ITO assessed the same under the head 'property'. The AAC, on appeal, upheld the decision of the ITO on second appeal, the Tribunal held that the structures in the bustees were not of a temporary character and constituted buildings, and thus, if the assessee was treated as the owner of the buildings on the leasehold, then the…

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