Commissioner of Income Tax vs M. Gulab Singh and Sons (P.) Ltd.

Kirpal, J.—The question referred by the Tribunal to this Court u/s 256(1) of the income tax Act, 1961 (''the Act'') is as follows:

"Whether, on the facts and in the circumstances of this case, the Tribunal was right in holding that income from third floor of the property known as ''Gulab Bhavan'' was not taxable u/s 22 of the income tax Act, 1961 as the income of the assessee in spite of the fact that the gift deed was registered on 13th March, 1973 ?"

The question involved is with regard to the head under which the income from the third floor of the property known as ''Gulab Bhavan'' is to be assessed. According to the department the income is to be assessed under the head ''Income from other sources while according to the assessee it was liable to be assessed under the head ''Income from house property'' u/s 22 of the Act.

Since the reference of the aforesaid question is pending, the matter is no longer res integra. A Division Bench of this Court in the case of Sushil Ansal Vs. Commissioner of Income Tax, has held that in multi storeyed buildings where there is no registered document transferring the title to the property, the income therefrom has to be assessed under the head ''Income from other sources''.

There is no challenge to the correctness of that decision before us and, therefore, following the said decision we answer the aforesaid question of law, referred to us, in the negative and in favour of the revenue. There will be no order as to costs.