Capital Gain cannot be taxed in absence of Transfer in Relevant Assessment Year

Zuari Estate Development and Investment Company Pvt. Ltd. Vs. JCIT (ITAT Panaji)

A perusal of the agreement and the above undisputed facts shows that till date no transfer of the property in question has been completed under the Transfer of Property Act, 1882. Still further, the registered sale deed has not been executed by the assessee in favour of the Bank and consequently, sale is not yet completed. However, a part performance of the nature specified under section 53A of the Transfer of Property Act, 1882 has definitely taken place.

A reading of the above provisions of section 53A of the Transfer of Property Act shows that the following are the essential elements of transaction to be covered by the aforesaid provisions:

(a) There should be contract for consideration;

(b) It should be in writing;

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