Assesseeshould be

owner ol
17 property Para 86.2
Heed not be
extended tosite -u is not
c Jhich builkling stinds as

.strueture upon l
well as to necessry that
the ownersip sliould extena

.
asuperstruc Sile hekd by him suerstucture.F'o instance,
huillds
hesuperstructur uder a
and,accOrdingly, annual leaselold agreement,he wil et il

will be the
his hands dunng the vale ol the
ble in
taNable
he eurreey of lease.Thc
the
superstructire to position will
lessor Iree of
superstructure wotd De
renainl so even il lie were
o ranste fland, ie., groundrent,is taxable in the
cost on the
expiry of lease ter Incone
or
e hands of the lessor
business prolession" il tho lessor is uderthe head"Profis
s of mder the head "ncomme Irom engaged in the and
ase other sources" il business of letting plot ol lands
m irom subletting the lessor is not so
ht ncome Irom subletting is not engagecd.
Eorinstance, A owns a laxable as income from
Z house property. He house
vyer ets it to on monthly rent
Y sublets lets it out to Y
(rent being Rs. 10,000
th). of Rs. per
from house 40,000. Rental ineome of X is
cad "Income
t
property". Since Y is not taxable
the' s he
head "lnconme the owner of the house, his under
under from house Is
income
under section 28 28 or
or as
income lrom other property", but is taxable as business
sources under
section 56.
Owner" in certain typcalcases -Under the
86.2 law of
in the Offi
Fficial
Assignee. Therefore, Ollicial insolveney, property of
insolvent
yese
vests
of section 22-Re.
Offtcial Assignee for
Assignee can be treated as as "owner"for the
pueiver is appointed by the Court, the Bengal| 1937|5 ITR 233
(Cal.). If,
a property of the insolvent does not vest in
however,
er.Receiver cannot, therelore, be

nnge
theC
K ofproperty, charged to tax as owner under
mortgagor ol property (not
section 22. In
caseof
22,Where a property IS Owned by mortgagec) is alone charged to tax
under
partnership, it is the firm which is assessable under
Sion 22; individual partners cannot,
therefore, be assessed under
section 26 as co-
Sners-Sarvamangala Properties Lid. v. CIT|1973190 ITR 267
ase of property owned by an (Cal.). The same holds true
associalion of persons. If property is held undera trust,
come under section 22 1s laxable either in the thhe
hands of trustees or in the hands of
beneficiaries.

Owner in the
R6.2.3
previous year- Astax is leviedonly on the incomeof
previous ycar, annual
Value property, owned by a person during the previous
of
ycar, is taxable in the following
assessment year, even the assessee is not owner of the
it
property during the assessment year.
R6.2-4 Deemed owner- Besides the legalowner,section 27
provides that the following persons
are to betreated as deemed owner of house
property for the purpose of charging tax on
annual valueunder the head "Income from house property":
to spouse
Transfer orminor child withoutadequate consideration- An individual, who
transfers houseproperty otherwise than for adequate consideration to his or her spouse (not
being
atransfer in connection with an agreement to live apart) or to his minorchild
(not being
a married daughter), is treated asdeemed owner of house
property [sec. 27()]. If the property
transferred by an individual is not houseproperty, the deeming fiction would not come to play
at all-K.D. Thakarv. CIT[1979] 120 ITR 190 (Guj.). For instance, if an individual transfers a
sum of money to his wife (without adequateconsideration) who purchases house
property
out of gifted money, the transferor will not be treated as deemed owner of the house
property
for the purpose of section 22, though in such a case annual value of the house
property,
computed in the hands of wife, will beincluded in total incomeof the transferor undersection
64(1) [seepara 209].

Impartible estate The holder of impartible estate is treated as deemed owner of house
property [sec.27(it)].
Allotment
or leaseunder a house building scheme A member of co-operative society,
-

company or other association to whom a building or a part thereof is allotted or leased under
a
house building scheme
of the society,
company or other association respectively is treated
as deemed owner of such
property. [sec. 27(i)]
Acquiring housewithout registration
-A
person
who is allowed to take orretain possession
of
any building (or part thereof) in part performance of a contract of the nature referred to

Section
27(i) is not ultra vires-Sita Ram Singhaniav. CIT[1991] 192 ITR 361 (Delhi).