Registered conveyance governed capital gains taxability where alleged oral transfer and possession failed under section 2(47).

An alleged oral agreement and claimed possession did not establish transfer under section 2(47) of the Income-tax Act, 1961, because no written contract or reliable corroboration was produced and the confirmation letter was undated and insufficient. The registered sale deed executed on 29.08.2003 was treated as the governing transfer document, and oral evidence could not override it. The claimed arrangement also failed to satisfy part performance under section 53A of the Transfer of Property Act, 1882 or any other limb of section 2(47). Capital gains were therefore taxable in the year relevant to assessment year 2004-05.

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Issues: Whether the transfer of the land for capital gains purposes took place in the previous year 1994-95 or only on execution of the registered sale deed in 2003-04, and whether the assessee's claim of oral agreement and possession could bring the transaction within section 2(47) of the Income-tax Act, 1961.

Analysis: The assessee did not produce any written contract or dependable evidence to establish a transfer in 1994-95. The material on record showed that the registered sale deed was executed on 29.08.2003, and the claimed oral arrangement did not satisfy any of the limbs of section 2(47), including sale, exchange, relinquishment, extinguishment of rights, or a transaction in the nature of part performance under section 53A of the Transfer of Property Act, 1882. The confirmation letter relied upon by the assessee was found insufficient, undated, and unsupported by corroborative evidence. The Court also relied on the principle that oral evidence cannot prevail over a registered document.

Conclusion: The transfer was held to have taken place in the previous year relevant to assessment year 2004-05, and the capital gains addition was sustained against the assessee.

Final Conclusion: The appeal failed on merits because the alleged earlier transfer was not proved and the registered conveyance governed the taxability of the capital gains.

Ratio Decidendi: In the absence of a written and corroborated transfer arrangement, an alleged oral agreement and claimed possession do not constitute transfer under section 2(47) so as to shift the year of taxability from the date of the registered conveyance.

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