https://www.taxtmi.com/caselaws?id=258412 Capital gains arising from a development agreement were not taxable in the year of execution because the deemed transfer rule did not apply on the facts. The agreement was only for development, and the developer had not obtained sanction, commenced construction, or otherwise shown readiness and willingness to perform during the relevant year. Mere execution of the agreement and receipt of a refundable deposit did not amount to transfer or accrual of consideration. As the essential requirements of part performance under Section 53A of the Transfer of Property Act were absent, the arrangement could not be treated as a contract covered by the deeming provision, and the addition based on capital gains was unsustainable. en-us Fri, 20 Mar 2015 00:00:00 +0530 Thu, 09 Apr 2015 06:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258412 Capital gains arising from a development agreement were not taxable in the year of execution because the deemed transfer rule did not apply on the facts. The agreement was only for development, and the developer had not obtained sanction, commenced construction, or otherwise shown readiness and willingness to perform during the relevant year. Mere execution of the agreement and receipt of a refundable deposit did not amount to transfer or accrual of consideration. As the essential requirements of part performance under Section 53A of the Transfer of Property Act were absent, the arrangement could not be treated as a contract covered by the deeming provision, and the addition based on capital gains was unsustainable. Case-Laws Income Tax Fri, 20 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258412