In case of development agreements transfer completes on handing over of possession despite non receipt of payment

The element of factual possession and agreement are contemplated as transfer within the meaning of the aforesaid section. When the transfer is complete, automatically, consideration mentioned in the agreement for sale has to be taken into consideration for the purpose of assessment of income for the assessment year when the agreement was entered into and possession was given. Here, factually it was found that both the aforesaid aspects took place in the previous year relevant to the assessment year 2003-04. Hence, the learned Tribunal has rightly held that the appellant is liable to pay tax on the capital gain for the assessment year. Accordingly, we do not find any element of law to admit this appeal.

HIGH COURT OF ANDHRA PRADESH

ITTA No. 245 OF 2014

Dated 09-04-2014

                        Potla Nageswara Rao.                         

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