Case Law Details
Mahesh D. Saini Vs ITO (ITAT Mumbai)
Held that as per agreement, the assessee will hand over physical possession of the property only after the purchaser obtains Intimation of Disapproval. Hence, till the property is not transferred as per the terms of agreement, capital gain on the same cannot be taxed.
Facts-
The assessee is challenging the order of the CIT(A) confirming the addition of Rs.1,05,37,002/- as long-term capital gain (LTCG) treating the purported capital asset as transfer in view of the provisions of Section 2(47) (v) of the Income Tax Act, 1961 r.w. Section 53A of the Transfer of Property Act, 1882 (4 of 1882).
Notably, assessee jointly entered into sale Cum Development Agreement on 21.10.2010 with the Developer cum Purchasers for transfer of their ancestral property. Accordingly, consideration received by the assessee for transfer of his 1/3rd right, title, and interest in the said property was Rs. 36 Lac and a right in the house property of Rs. 2,500/sq. feet built-up area wall to wall flat.
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