Capital gains transfer test requires proof of consideration and possession; inconclusive facts justified remand for fresh verification.

Transfer for capital gains purposes depends on whether the transaction was completed on the facts, including receipt of consideration and handing over of possession. Although the registered sale deed and AIR material suggested a completed sale, the record contained conflicting evidence on payment, possession and post-sale conduct, and the co-owner and purchaser's compliance were not fully examined. On that incomplete record, taxability under section 45(1) and section 2(47)(v) of the Income-tax Act, read with section 53A of the Transfer of Property Act, could not be finally determined. The matter was therefore sent back for fresh factual verification and a speaking order.

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Issues: Whether short-term capital gains arose on the sale of immovable property in the year under appeal, and whether the matter required remand for verification of receipt of consideration and handing over of possession.

Analysis: The registered sale deed, the AIR information, and the surrounding documents indicated a completed transaction, but the assessee disputed receipt of consideration and the delivery of possession. The record also showed conflicting material regarding payment details, possession, and post-sale conduct, and the factual position of the co-owner and the purchaser's compliance was not investigated fully. In these circumstances, the issue whether the transfer was completed in the manner attracting section 45(1) and section 2(47)(v) of the Income-tax Act, 1961 read with section 53A of the Transfer of Property Act, 1882 could not be finally resolved on the existing record.

Conclusion: The addition could not be finally sustained or deleted on the present material, and the matter was required to be sent back for fresh factual examination and a speaking order.

Final Conclusion: The dispute was restored for verification of the essential facts before a fresh decision on taxability, and the Revenue's appeal succeeded only for statistical purposes.

Ratio Decidendi: Where the existence of transfer for capital gains purposes depends on disputed facts about receipt of consideration and handing over of possession, and the record is inconclusive, the matter should be remitted for factual verification before a final finding is recorded.

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