Deemed transfer under capital gains law requires section 53A conditions, including possession and transferee readiness to perform.

An agreement to sell immovable property did not amount to a completed transfer or deemed transfer for capital gains purposes because the conditions of section 53A of the Transfer of Property Act were not satisfied. Possession was not handed over, the transferee had not shown readiness to perform the reciprocal obligations, and title had not passed through execution and registration of a final conveyance. On that basis, the transaction did not fall within section 2(47)(v) of the Income-tax Act, 1961, and no capital gains arose in the relevant assessment year; the addition was deleted.

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Issues: Whether the agreement dated 19 October 1995 constituted a completed transfer of immovable property, and whether the transaction attracted capital gains tax under section 2(47)(v) read with section 53A of the Transfer of Property Act, 1882.

Analysis: The agreement was examined as a contract to sell for a future conveyance, not as an immediate sale deed. The transaction did not satisfy the ingredients of section 53A because possession had not been handed over to the purchaser, the purchaser had not completed or shown readiness to complete the essential reciprocal obligations on the stated terms, and the title had not passed by execution and registration of a final conveyance. In these circumstances, there was no transfer by sale, exchange, relinquishment, or extinguishment of rights within the meaning of section 2(47)(v) of the Income-tax Act, 1961.

Conclusion: The agreement did not amount to a transfer giving rise to capital gains in the relevant assessment year, and the addition made by the Assessing Officer was rightly deleted.

Ratio Decidendi: An agreement to sell does not constitute a deemed transfer under section 2(47)(v) unless the transaction satisfies the conditions of section 53A of the Transfer of Property Act, including delivery or retention of possession in part performance and readiness of the transferee to perform the contract.

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