BHAGWAN DASS JAIN vs UNION OF INDIA

The Supreme Court held that the tax levied under the Income-tax Act, 1961, specifically under Section 23(2)(i), is on the income derived from house property and not on the property itself. The Court clarified that the term 'income' encompasses not only monetary benefits realized but also notional income from self-occupied property, thus falling under Entry 82 of List I of the Seventh Schedule of the Constitution. The petitioner's argument that such taxation was unconstitutional was rejected, affirming the High Court's dismissal of the writ petition.