MANDIRA MUKHERJEE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) On the reference application, the Tribunal has referred the following question under Section 256(1) of the Income-tax Act, 1961, set out at page 7 of the statement of case for our opinion : "Whether, on the facts and in the circumstances of the case, the rent received by the assessee from the house property is assessable as income from other sources or income from house property ?"

(2.) The assessee, Smt. Mandira Mukherjee, is the daughter of Sailendra Nath Roy. A deed of settlement dated March 8, 1951, was made by the late Amarendra Nath Roy, grandfather of Smt. Mandira Mukherjee. Under the deed of settlement, he had settled the property valued at Rs. 3,00,000, including the property in question. Under the deed, he made Shri Sailendra Nath Roy, his only son, a trustee and also made provision for maintenance of his daughter and grand-daughter. As per the terms of the settlement deed dated March 8, 1951, a sum of Rs. 10,000 was to be spent on the occasion of marriage of the assessee and an amount of Rs. 100 per month be spent on her education. After defraying these expenses, Shri Sailendra Nath Roy was allowed to enjoy the estate as absolute owner thereof till his life time. Thereafter the property would vest absolutely in Subir Kumar Roy. Shri Subir Kumar Roy has also constructed some factory-shed on that land. In 1980-81, the income from this property was assessed as "income from other sources".

(3.) On the basis of an affidavit filed by Shri Sailendra Nath Roy that the assessee had been in occupation of the demarcated 10 cottahs of land in C.S. Plot Nos. 4439 and 4440 of C. S. Khaitan 2533 of Mouza Behala, P. S. Behala, District 24-Parganas, as a non-agricultural tenant from the year 1985. He also declared in the affidavit that Smt. Mandira Mukherjee would continue to hold so the land through her heirs, successors, legal representatives and assignees.