Law: Income Tax Ordinance, 1979

Section: 12(13)

(a) Income Tax Ordinance (XXXI of 1979)----S. 12(13)---Subsection (13) of S.12 has been couched in unambiguous terms---Question whether the assessee was the owner of a building, was a pure question of fact which would depend upon the circumstances o f each case. (b) Income Tax Ordinance (XXXI of 1979)--- ----S.12(13)---Lease agreement showed that although the plot of land remained the property of Auqaf Department the structure raised thereon became the property of the assessee for ten years or for any extended term under the agreement---Except for the fact that assessee could not sell the property, it held a complete domain over it as it could sublet the structures built on the plot and could receive rents or advances which were non-refundable and non¬adjustable---Assessee, though, according to the lease agreement was bound to hand over the possession of the structure to the Auqaf Department at the expiry of the term of the lease and apparently it had not been vested with power to take away the superstructure or anything attached to the earth, but short of such authority, assessee was vested with complete power and authority over the property which could only be enjoyed by its owner---Held, lessee was the owner of the structure and was accountable under S.12(13) as owner of the property for any advance received from the tenants over and above the rent payable for the said tentments till such time as the possession thereof was retained by it ---Assessee, under the peculiar circumstances would be deemed to be the owner of the building during the agreed or extended term of lease and could be taxed under S.12(13) of the Ordinance. Bachu Bai F.E. Dinshaw v. Commissioner of Income Tax. 1967 PTD 170; Gooptu Estates Limited v. Commissioner of Income Tax, Bengal 4 I.T.C. 146; Sri Ganesh Properties Ltd. v. Commissioner of Income Tax, West Bengal (1941) I.T.R. 695 and S.G. Mercantile Corporation (P.) Ltd. v. Commissioner of Income Tax Calcutta (1972) 831.T.R. 700) distinguished. Ballygunge Bank Ltd., Calcutta v. Commissioner of Income Tax Bengal (1946) 14 I.T.R. 409; Commissioner of Income Tax, Lucknow v. Chandra Agro (P) Ltd. (1979) 117 LT.R. 251; Commissioner of…

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