Section 62

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All income arising to any person by irrevocable transfer shall be chargeable to income tax as the income of the transferor as and when the power to revoke the transfer arises(i.e on the death of the beneficiary/ transferee), and shall then be included in transferor total income.

Mr. A transfers his house property to Mr. B for the lifetime of Mr. B. the transfer is irrevocable and income from house property from the date of transfer shall be included in income of Mr. B and not in the income of Mr. A. On death of Mr. B, the income from house property shall be included in income of Mr. A from the date of death. The income shall be included in income of Mr. A even if Mr. A does not revoke the transfer on the death of Mr. B. This is because the law provides that the income shall be included in income of transferor as and when the power to revoke arises to him. Actual revocation is not relevant.