Law:

Section:

APRIL 23, 1985 Section 22 of the Income-tax Act, 1961 - Income from house property - Chargeable as - assessee purchased plot of land by withdrawing money from firm in which he was partner - subsequently, by reversing entries, cost of plot was distributed equally among assessee and his two brothers who also were partners in firm - meanwhile property was constructed on plot - cost of construction was initially met directly by firm and subsequently distributed amongst assessee and his two brothers in equal proportion - whether so far as plot was concerned, only assessee was its owner - held, on facts, yes - whether assessee and his two brothers were joint owners of property constructed on plot, each having one-third share therein, even though neither sale deed was executed by assessee in favour of his brothers nor was there any agreement among them stipulating that each one of them had one-third share in property and, consequently, authorities below were wrong in taxing entire income from property in hands of assessee - held, on facts, yes FACTS The assessee, who was a partner in a firm, purchased a plot of land out of amounts withdrawn from his account in the firm. Later on, the entries in the book of the firm were reversed by crediting the assessee's account by the above amounts and debiting in equal measure the accounts of the assessee and his two brothers, who were also partners in firm with the assessee and were alleged two owners of the property, by the total amount withdrawn from the firm. Meanwhile, a house property was constructed on the plot, the cost of which was also met by the firm initially and subsequently debited to the accounts of the three brothers. The assessee claimed that he and his two brothers were the joint owners of the property each having one-third share. The ITO rejected the assessee's claim and taxed the entire income from property in the hands of the assessee. He held that though part of the cost of construction had been paid by the two brothers of the assessee, they were not the joint owners of the property as no transfer deed had been registered in respect of it. On appeal, the AAC and, on further appeal, the Tribunal upheld the…

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