ITAT Deletes Capital Gains Addition: Agreement to Sell Alone Does Not Amount to Transfer

Ganpatbhai Mayajibhai Baria Vs ITO (ITAT Ahmedabad) ITAT Deletes Capital Gains Addition: Agreement to Sell Alone Does Not Amount to Transfer The Ahmedabad ITAT deleted an addition of ₹56.98 lakh made as undisclosed capital gains, holding that the mere execution of a Banakhat (agreement to sell) does not result in a “transfer” under section 2(47) of the Income-tax Act unless the conditions of section 53A of the Transfer of Property Act are satisfied. The assessee, along with other co-owners, had entered into a notarized agreement to sell agricultural land in March 2018, but the registered...