Section 2(47)(v) applies only when section 53A requirements are met; absent a written contract, no transfer arose.

Section 2(47)(v) of the Income-tax Act applies only where the transaction independently satisfies section 53A of the Transfer of Property Act, including a written contract signed by the transferor and possession in part performance. In the absence of any written agreement between the assessee and the developer, and where no sale consideration had been received during the relevant period, handing over of possession could not be treated as a transfer. On that basis, no capital gains arose in the block period, and the addition founded on an alleged developer transfer was unsustainable.

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Issues: Whether, in the absence of a written agreement and receipt of consideration, the handing over of possession to a developer amounted to a transfer within the meaning of section 2(47)(v) of the Income-tax Act, 1961 read with section 53A of the Transfer of Property Act, 1882, so as to attract capital gains in the relevant block period.

Analysis: Section 2(47)(v) applies only when the transaction satisfies the ingredients of section 53A of the Transfer of Property Act, 1882. A prerequisite for section 53A is a contract to transfer immovable property by writing signed by the transferor or on his behalf, from which the terms can be ascertained with reasonable certainty. The record showed that there was no written agreement between the assessee and the builder and no sale consideration had been received during the relevant period. In the absence of these foundational requirements, the developer's occupation could not be treated as possession in part performance of a contract falling within section 53A.

Conclusion: The transaction did not constitute a transfer under section 2(47)(v) of the Income-tax Act, 1961, and no capital gains were assessable in the block period.

Final Conclusion: The addition made on the basis of an alleged transfer to the developer was unsustainable, and the Revenue's appeal failed.

Ratio Decidendi: Section 2(47)(v) is attracted only where the transaction independently satisfies the statutory requirements of section 53A of the Transfer of Property Act, 1882, including a written contract and possession in part performance.

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