Law:

Section:

Section 22 of the Income-tax Act, 1961 - Income from house property - Chargeable as - Assessment years 1979-80 to 1982-83 and 1984-85 - Assessee had purchased some property, but had not received possession thereof - During course of assessment, income-tax authorities estimated annual letting value for property and included same in total income of assessee - On appeal, Tribunal, considering fact that assessee was not in a position to exercise his right as an owner, deleted income from property - Whether Tribunal was justified in deleting income from property in question - Held, yes FACTS The assessee had purchased some property but, it had not received the possession thereof. The income-tax authorities estimated the annual letting value for this property and included the same in the total income of the assessee. On appeal, the Tribunal considering the fact that the assessee was not in a position to exercise his right as an owner, deleted the impugned addition. On reference : HELD In CIT v. Podar Cement (P.). Ltd.[1997] 226 ITR 625 (SC), it was held that, having regard to the object of the Act to tax the income, 'owner' is a person who is entitled to receive the income from the property in his own right. Applying the aforesaid ratio to the instant case, it was to be held that the Tribunal was justified in law in deleting the income from property in question. Note : The case was decided in favour of the assessee. CASE REVIEW CIT v. Podar Cement (P.) Ltd. [1997] 226 ITR 625 (SC) followed and relied upon. CASES REFERRED TO CIT v. Podar Cement (P.) Ltd. [1997] 226 ITR 625 (SC) and R.B. Jodha Mal Kuthiala v. CIT [1971] 82 ITR 570 (SC). Manish R. Bhatt for the Applicant. B.D. Karia for the Respondent. JUDGMENT1 D.A. Mehta, J.-The following question, identically worded in both the references, has been referred for the opinion of this court by the Income-tax Appellate Tribunal under section 256(2) of the Income-tax Act, 1961 ("the Act"), at the instance of the Commissioner of Income-tax, Baroda : "Whether, on the facts and in the circumstances of the case and in law, the Appellate Tribunal is right in law in deleting the income from property known as 'Jadhav Bungalow'?"…

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