Unregistered development agreement cannot trigger deemed transfer under section 2(47)(v) without an enforceable contract.

An unregistered development agreement executed after the 2001 amendment to section 53A of the Transfer of Property Act could not trigger the deeming transfer provision in section 2(47)(v) of the Income-tax Act, 1961, because an unregistered instrument is not enforceable for part performance and therefore cannot satisfy the statutory concept incorporated by that provision. The absence of a valid, enforceable contract meant no transfer arose under section 2(47)(v), making the related addition unsustainable. The factual question of delivery of possession became unnecessary to decide.

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Issues: Whether an unregistered development agreement, executed after the 2001 amendment to the Transfer of Property Act, could attract the deeming transfer provision under section 2(47)(v) of the Income-tax Act, 1961.

Analysis: The agreement was not registered. After the amendment to section 53A of the Transfer of Property Act, an unregistered agreement has no effect in law for the purpose of part performance and cannot be enforced under section 53A. Since section 2(47)(v) of the Income-tax Act, 1961 incorporates the statutory concept of a transaction of the nature referred to in section 53A, the absence of a valid, enforceable contract meant that the deeming provision could not operate. The legal position was held to be settled by the Supreme Court, and the factual questions as to delivery of possession became unnecessary to decide.

Conclusion: The unregistered development agreement did not give rise to a transfer within section 2(47)(v) of the Income-tax Act, 1961, and the addition was not sustainable.

Final Conclusion: The assessee succeeded, and the revenue's appeal was rejected.

Ratio Decidendi: For the purposes of section 2(47)(v) of the Income-tax Act, 1961, a transaction can amount to a transfer only if it is founded on a contract enforceable under section 53A of the Transfer of Property Act; an unregistered agreement, after the 2001 amendment, cannot satisfy that requirement.

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