The ITAT held that no taxable "transfer" arose under section 2(47)(v) of the Income-tax Act for the impugned year in respect of the assessee, a non-resident, who had entered into a Property Development Agreement and Supplementary Agreement with a developer. Relying on the SC ruling in Balbir Singh Maini, the Tribunal held that, as neither agreement was registered, section 53A of the Transfer of Property Act was not attracted, rendering section 2(47)(v) inapplicable. Consequently, the capital receipts, though partly received in FY 2017-18 and the balance in FY 2018-19, could not be assessed as capital gains in the relevant year. The assessment order was set aside and the assessee's appeal allowed.
The ITAT held that no taxable "transfer" arose under section 2(47)(v) of the Income-tax Act for the impugned year in respect of the assessee, a non-resident, who had entered into a Property Development Agreement and Supplementary Agreement with a developer. Relying on the SC ruling in Balbir Singh Maini, the Tribunal held that, as neither agreement was registered, section 53A of the Transfer of Property Act was not attracted, rendering section 2(47)(v) inapplicable. Consequently, the capital receipts, though partly received in FY 2017-18 and the balance in FY 2018-19, could not be assessed as capital gains in the relevant year. The assessment order was set aside and the assessee's appeal allowed.
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