https://www.taxtmi.com/caselaws?id=151455 An agreement to sell does not amount to a transfer of a capital asset under Section 2(47) of the Income-tax Act, 1961 unless part performance under Section 53A of the Transfer of Property Act, 1882 is established through a clear stipulation and proved handing over of possession. Here, the contract contained no express term for pre-conveyance possession, and peripheral acts such as applications for utility connections were insufficient to prove possession in part performance. The later rescission of the agreement, partial refund of advance, and absence of any registered sale deed showed that the transaction never crystallised into a transfer. The short-term capital gains addition was therefore not sustainable. en-us Mon, 20 Apr 2009 00:00:00 +0530 Thu, 19 Oct 2023 17:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151455 An agreement to sell does not amount to a transfer of a capital asset under Section 2(47) of the Income-tax Act, 1961 unless part performance under Section 53A of the Transfer of Property Act, 1882 is established through a clear stipulation and proved handing over of possession. Here, the contract contained no express term for pre-conveyance possession, and peripheral acts such as applications for utility connections were insufficient to prove possession in part performance. The later rescission of the agreement, partial refund of advance, and absence of any registered sale deed showed that the transaction never crystallised into a transfer. The short-term capital gains addition was therefore not sustainable. Case-Laws Income Tax Mon, 20 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151455