Case Law Details

Case Name : R. Kalanidhi Vs ITO (ITAT Chennai)
Appeal Number : ITA No. 1665/Mds/2004
Date of Judgement/Order : 07/03/2008
Related Assessment Year :
Courts : All ITAT (6542) ITAT Chennai (272)


11. Keeping in view the nature of the transaction between the Assessee and the so called Developer, coupled with the transfer and the possession of the immovable properties, we find that the transaction amounts to conveyance in favor of the purchaser of the properties and the transfer was completed on the date when the purchases were executed and possession was handed over. By means of these documents executed by the Assessee, the Assessee had transferred all material rights and interest in the property, coupled with possession in favor of the purchaser which by no means is other than the transfer of the properties. As per clause (v) of section 2947) of the I.T. Act, transfer includes any transaction which allows possession to be taken/retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, and any transaction entered into in any manner which has the effect of transferring or enabling the enjoyment of any immovable property. Therefore, any transaction involving allowing of possession to be taken over or retained in part performance as referred to in section 53A of Transfer of Property Act would come within the ambit of section 2(47)(v) of the I.T.Act.

12. In the present case, when the possession was handed over and total consideration was also agreed upon by the parties and the vendor was allowed to enjoy and entertain the property for the purpose it was taken over, then the transaction has fulfilled the conditions required under section 53A of the Transfer of Property Act and, therefore, it is covered under the definition of transfer under section 2(47)(v) of the I.T. Act. we are of the considered view that the assessee has failed to established any case in its favor and accordingly, the appeal of the assessee is devoid of merit. Hence, we confirm the order of the CIT (Appeals).


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