Section 27(iiia) — the law in short
What the courts have decided on section 27(iiia), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
-
CIT v Podar Cement (P) Ltd
Supreme CourtCuts both ways
I have paid for the flat and I am in possession, but the conveyance was never registered. Am I the owner for s.22?
Yes. For s.22 the Supreme Court read 'owner' as the person entitled to receive the income from the property in his own right, not the person holding a registered title. A buyer who has paid the whole consideration and is in possession is therefore assessable on the rent under the house property head even though no conveyance has been registered — which is why the assessee here, who had returned the rent under s.56 and argued it was not the owner, lost. The Court also held the deemed-ownership clauses inserted in s.27 by the Finance Act 1987 to be declaratory and retrospective.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.