Registered sale deed governed capital gains timing, and later payment did not defer transfer or taxability.

Capital gains on the sale of agricultural land were held to accrue in assessment year 2007-08 because the registered sale deed conveyed title, recorded part payment and delivery of possession, and the revenue records and mutation entries showed transfer before year-end. The assessee's reliance on delayed receipt of the balance consideration, a cancellation clause, and the purchaser's affidavit did not postpone the transfer or create two taxable events. The text further states that the capital gains addition was deleted in the assessee's favour, and the remaining grounds became infructuous.

---

---

Issues: Whether capital gains arising from the sale of agricultural land were taxable in assessment year 2007-08 on execution of the registered sale deed, notwithstanding that substantial consideration was received later and possession was claimed to have remained with the assessee until such later receipt.

Analysis: The registered sale deed recorded the sale consideration, receipt of part consideration, and delivery of possession to the purchaser. The revenue records and mutation entries also reflected transfer in favour of the purchaser before the close of the relevant year. The assessee relied on the post-dated cheque arrangement, the cancellation clause, and the purchaser's affidavit to contend that the transfer would be complete only on later realization of the balance consideration. The Tribunal followed its earlier reasoned decisions on identical facts and held that the mere postponement of part payment did not defer the transfer where the sale deed itself effected conveyance and possession had been handed over. The subsequent realization of the remaining consideration did not split the transfer into two taxable events.

Conclusion: Capital gains accrued in assessment year 2007-08 and were taxable in that year; the addition on that account was deleted in the assessee's favour. The remaining grounds, including exemption claims and reopening, became infructuous.

---