TaxTMI 
TaxTMI 
1997 (1) TMI 131
X X X X Extracts X X X X
X X X X Extracts X X X X
....consideration was at Rs. 14 lakhs. While a sum of Rs. 12.30 lakhs was paid in advance at the time of execution of agreement for sale, the balance of Rs. 1.70 lakhs was to be paid at the time of registration of sale deed. The assessee along with his wife received vacant possession of the property as provided for in the agreement. As no sale deed could be executed for non-availability of requisite certificate of clearance from the Income-tax Department, the assessee and his wife occupied the premises, namely, B-3, Maharani Bagh,New Delhion a monthly rent of Rs. 500. The amount of Rs. 12.30 lakhs as paid was to be adjusted against such rent. On29-11-1986, Raja Malvinder Singh who was the owner of the property entered into an agreement for sale....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee's valuable right the claim under section 54F of the Act was accepted by the learned CIT(A). Against this, the revenue is aggrieved. 3. According to the learned DR the assessee acquired valuable right on the basis of agreement for sale of property B-3, Maharani Bagh on 8th day of April, 1981. This was relinquished on29-11-1986, when the assessee was made a confirming party to the agreement executed between Raja Malvinder Singh and Shri S.V. Muzumdar. Since the property at 5-A, Malcha Marg was purchased on5-5-1989, the period between the two being more than 2 years, the assessee's case was not covered under section 54F of the Act. As per the arguments advanced as held by the Assessing Officer the capital gain arose in assessment year....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., 1981, the assessee paid Rs. 12.30 lakhs to the vendor. On receipt of the aforesaid amount, the vendor delivered the vacant and peaceful possession of the premises No. B-3, Maharani Bagh,New Delhito the assessee (clause 3). The vendor was to obtain necessary certificates, sanctions and permissions in order to hand over good and marketable title in the said property to the purchaser (clause 6). It was after this that the document was to be registered. As per clause 8 of the agreement in case the vendor is not able to give a good and marketable title, the purchaser would become the lessee of the said premises No. B-3, Maharani Bagh on a monthly rent of Rs. 500 which would be adjusted against the sum of Rs. 12.30 lakhs and the purchasers woul....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... definition of contract for sale as laid down in section 54 of the Transfer of Property Act. Section 54 of the Transfer of Property Act reads as under : " 54. ' Sale ' defined.--- 'Sale ' is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. Sale how made.--- Such transfer, in the case of tangible immovable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. In the case of tangible immovable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property. Delivery of tangible immovable property takes place wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
...." ---------------------- The vacant possession was handed over on6th May, 1987. Thus it was on6th May, 1987that transfer of asset took place and not on the date of agreement for sale. Reckoning from this date the property having been purchased within a period of 2 years, the assessee is entitled to exemption under section 54F of the Act as rightly held by the learned CIT(A) whose order we uphold. 6. While parting we would deal with the objection of the Wealth-tax Officer in regard to acceptance of assessee's claim by the Tribunal for non-inclusion of value of right possessed by the assessee in the wealth of the assessee. In this context, we find that both the sections 4 and 2(m) of the Wealth-tax Act at the relevant period of time ....