Registered sale deed and admitted cheque consideration supported capital gains treatment on transfer of immovable property.

A registered sale deed for immovable property was treated as a completed transfer giving rise to short-term capital gains where the assessee had earlier stated under section 131 that the co-owners executed the sale and received their shares by cheque. The claim that the cheques were not encashed for personal reasons or because of alleged litigation was unsupported by evidence, and there was no proof that the transfer was incomplete or that the consideration was conditional. On that basis, the transaction fell within section 2(47) and section 45 of the Income-tax Act, and the capital gains addition was sustained.

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Issues: Whether short-term capital gains could be assessed on the transfer of immovable property where the sale deed was registered and the assessee claimed non-receipt of sale consideration.

Analysis: The property was sold under a registered sale deed, and the assessee had earlier ed in a statement recorded under section 131 of the Income-tax Act, 1961 that he and the co-owners executed the sale and received their share of consideration through cheques. The plea that the cheques were not encashed for personal reasons or due to alleged litigation was not supported by any evidence. In the absence of proof that the transfer was incomplete or that the consideration was conditional, the transfer constituted a completed sale giving rise to capital gains under section 2(47) of the Income-tax Act, 1961 and section 45 of the Income-tax Act, 1961. The principle that a sale is a transfer of ownership in exchange for price paid or promised supported the addition.

Conclusion: The assessment of short-term capital gains was upheld and the challenge to the addition failed.

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