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Mere permission to construct on land not results in transfer for capital gain tax
Case Law Details
- Case Name
- Seshasayee Steels P. Ltd. Vs ACIT (Supreme Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- Supreme Court of India
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Seshasayee Steels P. Ltd. Vs ACIT (Supreme Court)
SC held that, under the sale agreement, the Taxpayer had granted mere license to Vijay Shanthi Builders Ltd. which cannot be equated with possession of property which necessarily requires control over the property and not mere occupation and, hence, provisions of Transfer of Property Act, 1882 were not attracted.
On a reading of the agreement to sell dated 15.05.1998, what is clear is that both the parties are entitled to specific performance. (See Clause 14)
Clause 16 is crucial, and the expression used in Clause 16 is that the party of the fi...
