TaxTMI 
TaxTMI 
1989 (9) TMI 168
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.... and have perused the material placed before us. 3. The only point arising in this appeal is whether the profit earned by the assessee on the sale of a plot of land at Chandigarh is a long-term capital gain, as alleged by the assessee, or a short-term capital gain, as assessed by the ITO. 4. The facts are that the assessee was allotted a plot of land bearing No. 129 by the Urban Estate Officer,PunjabatChandigarhon28-4-1972. Possession of the said plot was delivered to the assessee on24-7-73. The total price that the assessee was to pay for this plot measuring 500 sq. yd. was Rs. 13,500 and 15% thereof was to be paid within 30 days of the date of allotment. The allotment letter stated that after 25% of the amount had been paid, the ass....
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....d could be included in the Nizam's net wealth for purposes of wealth-tax. The Hon'ble Supreme Court held that mere delivery of possession accompanied by realisation of sale consideration did not divest the assessee of the ownership of the property and, therefore, they continue to belong to the assessee and could be included in his net wealth. The Hon'ble Supreme Court took into account the provisions of sec. 53A of the Transfer of Property Act relating to the effect of part performance of contract and held that in spite of the receipt of sale consideration and delivery of possession, the legal title remained with the vendor. 6. On behalf of the assessee reliance was placed on the case of Sunil Siddharthbhai v. CIT [1985] 156 ITR 509/23 T....
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....e Hon'ble Supreme Court in the case of Pandit Lakshmi Kant Jha v. CWT [1973] 90 ITR 97, in which the right to receive compensation under the Bihar Land Reforms Act was held to be an asset within the meaning of the Wealth-tax Act, 1957. On the basis of these rulings, the learned counsel for the assessee contended that in pursuance of the allotment, the payment of a part of the price and the delivery of possession of the plot to the assessee, the assessee's right to continue in possession of the plot and to get a sale deed executed in his favour was an asset, which the assessee held from 24-7-73 and, it was, therefore, a long-term capital asset. 7. Reliance was also placed on certain provisions of the Punjab Urban Estates (Sale of Sites) R....
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....he allottee unless the Estate Officer has executed a deed of conveyance in favour of the allottee. By virtue of the allotment the payment of a portion of the price and the delivery of possession of the land to the allottee, the allottee only gets a right to remain in possession of the plot as a licencee subject to his getting a deed of conveyance executed according to the terms of the Act and the Rules. The transaction so arrived at by the payment of a portion of the price and the delivery of possession to the allottee certainly creates some valuable rights in favour of the allottee so as to amount to an asset within the meaning of the Wealth-tax Act and sec. 2(14) of the Income-tax Act, 1961. That was an asset held by the assessee up to30-....