Completed transfer for capital gains requires factual verification where possession and civil dispute remain unresolved.

Taxability of long-term capital gains depended on whether the assessee's 1/24th share had actually been transferred, but the record showed that possession had not been handed over and civil proceedings over the property were still pending. Additional documents indicated that the partition dispute among co-owners and the restraint on delivery of possession continued, so the factual position on crystallisation of the transaction could not be confirmed on the existing material. The matter was therefore sent back for fresh examination of the record, including verification of the additional documents and a hearing for the assessee.

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Issues: Whether the assessee's 1/24th share in the property gave rise to taxable long-term capital gains in the year under consideration in the absence of completed transfer and in view of the pending civil proceedings.

Analysis: The assessee contended that the agreement to sell had not fructified because possession was not handed over and the civil court had restrained delivery of possession pending adjudication of the partition dispute. Additional documents were produced before the Tribunal to show that the dispute among co-owners and proceedings before the civil court were continuing. As these materials were not before the lower authorities, the factual position regarding whether the transaction had actually crystallized required verification. In these circumstances, the existing finding on transfer and capital gains could not be affirmed without fresh examination of the record.

Conclusion: The issue was remitted to the Assessing Officer for fresh adjudication after verification of the additional documents and after granting the assessee an opportunity of hearing.

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