SANKAR PRASAD MITRA, J.

( 1 ) THIS is a reference under Section 66 (1) of the Indian Income-tax Act, 1922. The assessment year is 1957-58. The corresponding previous year was the financial year ending on the 31st March, 1957. At the relevant time the assessee was a private limited company. In the years preceding the financial year aforesaid the assessee was the owner of premises No. 17b, Gurusaday Road, Calcutta. The assessee claimed for the assessment year 1957-58, that the bona fide annual value of this property was not assessable in the assessee's hands as the property had been sold on the 29th March, 1956, to Messrs. Punjab Produce and Investment Co. Ltd. before the beginning of the accounting year in question. It was stated that under an oral agreement dated March 27, 1956, the assessee agreed to sell the property to the aforesaid purchaser and in accordance with this agreement delivery of possession was given to the purchaser on March 29, 1956. It was stated further that the purchaser paid the whole of the consideration money on the 16th April, 1956, which was credited in the assessee's books in the suspense account. An agreement for sale was drawn up on April 28, 1956. The deed of conveyance transferring the property was executed on the 17th March, 1958, and was registered on 8th July, 1958.

( 2 ) THE Income-tax Officer was of opinion that ownership was not transferred until registration of the deed of conveyance. In the premises, during the accounting year in question the ownership remained vested in the assessee. The Income-tax Officer included the property's bona fide annual value in the assessee's total income.

( 3 ) THE Appellate Assistant Commissioner was also of the same view. He said that the property had not legally passed to the purchaser on the 29th March, 1956, as claimed by the assessee and he sustained the Income-tax Officer's order.

( 4 ) THE Tribunal referred to the Supreme Court's decision in Commissioner of Income-tax v. Bhurangya Coal Co. , and held that the execution of the deed of conveyance having taken place on the 17th March, 1958, registration could not take effect on any date earlier than that, even though it might have been mentioned in the body of the deed that the sale actually took place at a much earlier date. The Tribunal negatived the assessee's contention that the sale of the property was effected on March 29, 1956. The Tribunal, however, was of opinion that, though the assessee remained the legal owner, the beneficial ownership passed to the purchaser on the 29th March, 1956, and under Section 9 of the Indian Income-tax Act, 1922, the income from the property was assessable in the hands of the beneficial owner, that is the purchaser and not the assessee. The Tribunal held that the expression "of which he is the owner" in section 9 of the Act of 1922 made the beneficial owner and not the person having a legal title assessable in respect of the income from property under assessment. The Tribunal directed the exclusion of the bona fide annual value of premises No. 17b, Gurusaday Road, from the assessee's total income for the assessment year 1957-58.

( 5 ) THE following questions have been referred to this court:" (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the legal ownership of premises No. 17b, Gurusaday Road, Calcutta, did not pass to the purchaser on the 29th March; 1956? (2) If the answer to question No. 1 is in the affirmative then, whether the Tribunal was right in holding that the assessee was not liable to be assessed in respect of the bona fide annual value of premises No. 17b, Gurusaday Road, Calcutta, under section 9 of the Indian Income-tax Act, 1922, for the assessment year 1957-58 as the assessee was not the beneficial owner thereof ?"

( 6 ) MR. Roy, learned counsel for the assessee, contended that the execution of a document, unless the contrary is stated, ordinarily takes effect from the date of the execution

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