Capital gains on alleged transfer need proof of actual consideration received before full taxation; matter remanded for reconsideration.

Capital gains on an alleged transfer under section 2(47) could not be finally brought to tax in full where only part of the agreed consideration was shown as received and the balance remained unpaid. On the record, receipt of only Rs. 50 lakhs was evidenced against the stated sale price, and the effect of the pending civil dispute also required verification. The addition was therefore not sustained in full and the matter was restored for fresh adjudication, with the actual receipt of Rs. 50 lakhs left undisturbed and the capital gains computation reopened for reconsideration.

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Issues: Whether the addition towards long-term capital gains arising from the impugned transaction was sustainable in full when only part of the sale consideration had been received and the balance consideration remained unpaid.

Analysis: The transaction was examined in the context of the alleged transfer under section 2(47) of the Income-tax Act, 1961 and the civil dispute between the parties. The material on record indicated receipt of only Rs. 50 lakhs against the agreed consideration of Rs. 5.50 crores, with no material showing receipt of the balance amount. In these circumstances, the entire balance could not be brought to tax as capital gains in the assessee's hands without proper factual adjudication. The matter also required consideration of the outcome of the pending civil proceedings and fresh verification by the first appellate authority.

Conclusion: The addition was not finally sustainable in full; the taxable issue was restored for fresh adjudication, while the actual receipt of Rs. 50 lakhs was not disturbed.

Final Conclusion: The appeal succeeded only to the extent of remand, and the capital gains computation was left open for reconsideration on the basis of the remaining consideration and the civil court proceedings.

Ratio Decidendi: Capital gains cannot be finally assessed on an alleged transfer without proper determination of the consideration actually received and the surrounding legal effect of the transaction.

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