C.I.T PATIALA vs. SMT.MEENAKSHI GUPTA

ITR/128/1992HC Punjab & HaryanaPHHC01021967199219 October 2006Author: MR. JUSTICE RAJESH BINDAL,MR. JUSTICE ADARSH KUMAR GOEL2 pages
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What did the High Court hold?

The High Court held that the Appellate Tribunal was right in law in holding that the property belonged to the assessee. The Court noted that the view taken by the Tribunal was in line with the judgment of this Court in Smt. Kala Rani's case (supra). Crucially, the Court observed that the view taken in Smt. Kala Rani's case was subsequently approved by the Hon'ble Supreme Court in Commissioner of Income-Tax v. Podar Cement Pvt. Ltd. and others, (1997) 226 I.T.R. 625. Therefore, for the reasons stated in the aforementioned judgments, the High Court answered the question against the Revenue and in favour of the assessee. The reference was disposed of accordingly.

What were the facts?

The Revenue, Commissioner of Income-tax, Patiala, has referred a question of law to the High Court of Punjab and Haryana arising from an Income-tax Appellate Tribunal (ITAT) order for assessment year 1985-86. The assessee, Smt. Meenakshi Gupta, was receiving rental income from industrial shed No. C-44, Industrial Area, Mohali, at Rs. 5,000 per month. The Assessing Officer disallowed the deduction under Section 24 of the Income-tax Act, 1961, and assessed the income under the head 'income from other sources' because the property had not been transferred in the assessee's name. The assessee's appeals before the Deputy Commissioner (Appeals) and the ITAT were unsuccessful, with the ITAT allowing the assessee's plea.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the property belongs to the assessee when no transfer deed had been executed as required under the Transfer of Property Act and the Stamp Act? (Question of law) Assessee's contention: The assessee relied on the judgment of this Court in Smt. Kala Rani v. Commissioner of Income-Tax, Patiala-I, (1981) 130 I.T.R. 321, to pray for the vacation of the notice and to treat the income as income from house property. Revenue's contention: The Revenue contended that since no transfer deed had been executed as required under the Transfer of Property Act and the Stamp Act, the property could not be considered to belong to the assessee, and thus the rental income should be assessed under the head 'income from other sources'.

Which sections of the Income-tax Act were involved?

Section 24

AI-generated summary — verify with the full judgment below

I.T.R. No.128 of 1992 [1] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH I.T.R.No.128 of 1992 Date of decision: 19.10.2006 Commissioner of Income-tax, Patiala ..Applicant through

Mr.S.K.Garg Narwana, Advocate v. Smt.Meenakshi Gupta ..Respondent through Nemo CORAM: Hon'ble Mr.Justice K.S.Garewal Hon'ble Mr.Justice Rajesh Bindal

1.

Whether Reporters of local papers may be allowed to see the judgment ?

2.

To be referred to the Reporters or not ?

3.

Whether the judgment should be reported in the Digest? Rajesh Bindal, J. At the instance of the Revenue, the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, `the Tribunal') has referred the following question for the opinion of this Court arising out of ITA No. 935/Chandi/88 pertaining to the assessment year 1985-86, in terms of the directions given by this Court vide order dated 28.11.1991 in I.T.C. No.96 of 1991: “Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the property belongs to the assesse when no transfer deed had been executed as required under the Transfer o

The order continues below.

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