No tax on capital gain in case of permissive possession in Immovable Property

Smt. Vani Shree Vs ITO (ITAT Bangalore)

Conclusion: Assessee had given permissive possession and not ‘legal possession’, as contemplated within the meaning of section 53A of the Transfer of Property Act. Therefore, the provisions of section 53A of the Transfer of Property Act, were not applicable to the impugned Joint Development Agreement and the conditions laid down in section 2(47)(v), could not be invoked, so as to bring the capital gains into tax in the assessment year 2012-­2013.

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