2010 (2) TMI 153

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.... Road, R. A. Puram, Chennai, entered into an agreement dated March 29, 1993, with M/s. Chettinad Investment a partnership firm. Under the said agreement, she agreed to sell the property in question and the said firm agreed to purchase the property for a total consideration of Rs. 25, 00,000. She received an advance of. 40,000 and a further sum of Rs.7,10, 000 at the time of signing the agreement. As per the agreement, she should obtain a no objection certificate from the authorities concerned under Chapter XX-C of the Income t Act, 1961. Such a certificate was also obtained by her. However, she has not executed any sale deed in favour of the agreement holder. But on their request, she executed a power of attorney in favour of an individual ....

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....senior counsel for the appellant-assessee submitted that in order to attract the provisions of section 53A of the Transfer of Property Act, the identity of the parties to the agreement should remain unchanged. He would submit that though an agreement was entered into by the assessee with the firm M/s. Chettinad Investments and the possession had been given, the subsequent sale deeds, having been executed by the power holder, were only in respect of a portion of the property and not the whole property and in that event, the essential requirements of section 53A are not satisfied. He would further submit that section 53A relating to part performance of the contract is based on equity principle and is intended only to see that the agreement ho....

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....the property in question. For the execution of sale deed, a no objection certificate, from the competent authority under the Income-tax Act is necessary, as could be seen from clause (4) of the agreement. Such a certificate was also obtained. Nevertheless, the assessee had riot executed the necessary sale deeds. The fact remains that the assessee had received the full sale consideration of Rs. 25, 00,000 from M/s. Chettinad Investments, namely, the agreement holder even before the power of attorney was executed. The contention of the learned senior counsel for the assessee is that the act of the assessee in selling the portion of the property third parties in subsequent years and executing the sale deeds in favour of such vendees by utilisi....