Law:

Section:

Section 2(47) of the Income-tax Act, 1961 - Capital gain - Transfer Unless there is a written agreement, section 53A of Transfer of Property Act will not come into operation; where revenue was unable to prove that assessee had put developer in possession of property by receiving consideration partly or in full and fact remained that there was no sale agreement between assessee and builder and also assessee had not received sale consideration, it could not be held there was transfer of property as contemplated under section 2(47)(v) Section 2(47)( v) could come to the aid of the Department only if the conditions of section 53A of the Transfer of Property Act are satisfied. From a reading of the above provisions, it is clear that unless there is a written agreement, section 53A of the Transfer of Property Act will not come into operation. There was a raid in the premises of 'K' Builders and its partners on 20-8-1998. The assessee was the mother-in-law of the partner of the said partnership firm. During the raid, it was noticed that the assessee was the owner of the premises. The said firm had promoted a housing project which came up on the land belonging to the assessee. There was no written agreement between the 'K' Builders and the assessee for this development work as the builder was a family concern. The property in question was acquired by the assessee in March 1992. 'K' Builders started construction of the residential flats on this property on 10-2-1995. For effecting the sale of flats and registration of documents, sale deeds and other documents were executed by the assessee in favour of the various purchasers from November onwards. The assessee had received a sum of Rs. 5,80,346 out of the transfer of the total property and six residential flats towards consideration, which were found to be subsequently let out to six tenants. The total consideration received by the assessee was Rs. 32,32,383. The assessee filed her block return. The Assessing Officer computed short term and long-term capital gain and added it in the block assessment. Held that the dispute in the case was regarding the assessment year in which the transfer of land had to be assessed. In…

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