Agreement to sell and possession did not trigger capital gains until society permission completed the transfer of immovable property rights.

For immovable property, an agreement to sell with delivery of possession does not by itself constitute a transfer for capital gains purposes if the transaction also depends on transfer of society shares and related rights requiring the society's permission. The taxable event arises only when the transaction is effectively completed through a conveyance or equivalent completion of title and rights. On the stated facts, the transfer was completed when the society granted permission on 11-10-1986, so capital gains were not chargeable in A.Y. 1982-83 and the earlier year's addition was deleted.

---

---

Issues: Whether capital gains arising from the agreement dated 13-2-1982 were chargeable in A.Y. 1982-83, or whether the transfer took place only when the society granted permission on 11-10-1986.

Analysis: The property was immovable property, and the transaction involved not merely delivery of possession and receipt of consideration, but also transfer of society shares and related rights which required the society's permission. An agreement to sell did not by itself create title in the purchaser or extinguish the vendor's title. In the absence of a completed conveyance or effective transfer of the integral rights attached to the property, the taxable event could not be said to have occurred merely on 13-2-1982. The later resolution of the society on 11-10-1986 was the point at which the transfer became complete.

Conclusion: Capital gains were not chargeable in A.Y. 1982-83; the addition was not sustainable.

Final Conclusion: The transfer was completed only when the society permitted the transaction, so the capital gains addition for the earlier year was deleted.

Ratio Decidendi: For immovable property, an agreement to sell coupled with delivery of possession does not amount to a transfer for capital gains purposes unless the transaction results in an effective conveyance or complete extinction and creation of title in the relevant year.

---