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Section 22 of the income-tax act, 1961-income from house property-Chargeable as-Assessee sold a building-Possession of the same handed over to purchaser and due attornments also made by informing tenants to pay rent to purchasers-however, conveyance deed not registered- Whether income from property assessable in assessee's hands-held, on facts, yes Facts The assessee-company sold a building owned by it. Possession of the said building was handed over to the purchaser and due attornments were also made by informing tenants to pay the rent to the purchasers. However, the ITO taxed the income from the said property in the hands of the assessee, on the ground that the conveyance in respect of the said property was not complete, the assessee being the seller continued to be the legal owner of the said property. On appeal, the AAC confirmed the order of the ITO. On further appeal, the Tribunal reversed the AAC's order. On reference : Held Even though the purchaser was put into possession with all the rights incidental thereto, in the absence of a registered sale deed (as the value of the property exceeded Rs. 100), the transferee could not be regarded as 'owner' and, for asserting such a right, section 53A of the Transfer of Property Act was not available. The assessee was, therefore, liable to be assessed on the income from the said house. Case review CIT v. Zoroastrian Building Society Ltd. [1976] 102 1TR 499 (Bom.) followed. Cases referred to Addl. CIT v. U.P. State Agro Industrial Corpn. Ltd. [1981] 127 ITR 97 (All.), R.B. Jodha Mal Kuthiala v. CIT [1971] 82 ITR 570 (SC) and Smt. Kala Rani v. CIT [1981] 130 ITR 321 (Punj. & Har.). Judgment Kania J.-This is a reference under section 256(1) of the Income-tax Act, 1961 (referred to hereinafter as 'the said Act'). The question referred to us for our determination in this reference is as follows : "Whether, on the facts and in the circumstances of the case, the assessee is liable to be assessed on the income from the property in question under the provisions of section 22 of the Income-tax Act, 1961?" The facts giving rise to this reference are as follows : The assessee is a private limited company. The relevant…

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