Income tax Brain Teaser

There is an organisation named CITI GROUP.These group collect money from general public & purchase plot out of these money on investor name( public). A Particular plot on name of say 4-5 investor . These Investors are traceble.The investors are the owner of the plot for a fixed period & they( CO.) will construct some bulding ( purpose of may be giving building on rent or business use).During this period, company will pay rent to the investor for a fixed period. After this fixed stipulation, the company will become the owner of the plot ( As per the agreement )& the principal amount that had been collected initially will not be refunded to investor.SO CAN YOU PROVIDE WITH ITS TAX IMPLICATION FROM INVESTOR VIEW POINT.

1) IN WHICH HEAD WILL RENT INCOME WILL BE TAXABLE ( PLEASE NOTE THAT DURING RENT PAYMENT PERIOD , INVESTOR ARE THE OWNER O THE PLOT.)

2) DEDUCTION OF INITIAL INVESTMENT WILL BE AVIALBLE TO INVESTOR ON PROPORTIONATE BASIS OR AT THE END OF THE FIXED PERIOD AFTER WHICH CO . WILL BE OWNER.

3) AT WHAT VALUE WILL BE PLOT RECORDED IN BOOKS OF COMPNAY AFTER THE FIXED PERIOD.( SINCE CO. WILL BE OWNER OF THE PLOT AFTER THAT PERIOD)