Section 2(47)(v) transfer requires section 53A compliance; unregistered agreement and unwilling transferee defeat deemed transfer.

The deeming transfer provision under section 2(47)(v) applies only where the transaction satisfies section 53A of the Transfer of Property Act: a written contract for consideration, part performance by delivery of possession, and the transferee's continued willingness to perform. Where the agreement was unregistered and the transferee's conduct after the dispute showed unwillingness to complete the contract, the arrangement was not enforceable for section 53A purposes. On those facts, alleged part payment or asserted possession did not complete a transfer, and the proposed tax enhancement based on transfer could not be sustained; the additions were liable to be deleted.

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Issues: Whether the alleged transfer of immovable property could be treated as a transfer under section 2(47)(v) of the Income-tax Act, 1961 read with section 53A of the Transfer of Property Act, 1882, when the agreement was unregistered and the transferee did not remain willing to perform the contract.

Analysis: The deeming provision under section 2(47)(v) operates only where the transaction is of the nature contemplated by section 53A, namely, a written contract for consideration, transfer of possession in part performance, and continued willingness of the transferee to perform the contract. The agreement relied upon was unregistered, and after the dispute arose the transferee's conduct showed unwillingness to perform, culminating in cancellation of the agreement. In such circumstances, the contract was not enforceable in law for the purposes of section 53A, and the alleged transfer could not be treated as complete merely because part payment or possession was asserted.

Conclusion: The deeming fiction under section 2(47)(v) did not apply, and the enhancement based on alleged transfer was unsustainable. The additions were liable to be deleted.

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