Part performance doctrine treated agreement to sell and possession as a transfer for capital gains purposes.

An agreement to sell covering the entire property, coupled with delivery of possession and receipt of full consideration, was treated as attracting the doctrine of part performance under section 53A of the Transfer of Property Act. The relevant inquiry was whether the acts were referable to the contract and whether the agreement holder obtained possession under that arrangement; on those facts, the transaction was held to amount to a transfer under section 2(47) of the Income-tax Act, 1961 for capital gains purposes. The later execution of a power of attorney and sale deeds by the power holder in respect of portions of the property did not alter the original contractual position or the effect of the earlier possession and payment.

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Issues: Whether the assessee's agreement to sell, handing over of possession, and receipt of full consideration attracted section 53A of the Transfer of Property Act so as to constitute a transfer under section 2(47) of the Income-tax Act, 1961, for capital gains purposes.

Analysis: The agreement covered the entire property, contemplated sale after obtaining the statutory no-objection certificate, and the full sale consideration had been received. For invoking the doctrine of part performance, the acts must be referable to the contract in question, and the relevant inquiry is the agreement between the parties and its performance in terms thereof. The subsequent execution of a power of attorney and sale deeds by the power holder in respect of portions of the property did not alter the original contractual relationship or the assessee's inability to assert possessory rights against the agreement holder after possession had been delivered.

Conclusion: Section 53A applied, and the transaction amounted to a transfer for the purpose of section 2(47) of the Income-tax Act, 1961. The assessee's challenge failed.

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