Capital gains on unregistered property transfer turn on delivery of possession and substantial consideration, not registration alone.

Capital gains could be computed on the basis of the transaction actually effected where the assessee sold property under an unregistered agreement, received substantial consideration, and handed over possession. The record, including the remand report, showed that the buyer recorded the transaction in her financial statements, supporting the view that transfer had occurred in substance. Registration of the conveyance was not treated as indispensable on these facts, so the addition made in assessment could not be sustained. The CIT(A)'s deletion of the addition was therefore upheld and the Revenue's challenge failed.

---

---

Issues: Whether the assessee's claim of capital loss arising from sale of property under an unregistered sale agreement was rightly ed by the CIT(A), and whether the resulting addition made in assessment could be deleted.

Analysis: The assessee had sold the property and had received substantial consideration along with handing over of possession. The material on record, including the remand report, showed that the buyer reflected the transaction in her financial records. For capital gains purposes, registration of the conveyance was not treated as indispensable where transfer in substance had taken place by delivery of possession and part consideration. The computation of capital gains or loss was therefore to be made on the basis of the transaction actually effected, and the deeming value dispute did not justify sustaining the addition as made in assessment.

Conclusion: The CIT(A)'s deletion of the addition was upheld, and the Revenue's challenge on this issue failed.

---