2014 (8) TMI 636

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....ate Tribunal is legally correct in relying on the decision of the Bombay High Court in the case of Chaturbhuj Dwarkadas Kapadia reported in [2003] 260 ITR 491 (Bom) to hold that the capital gains arise in the year of entering into development agreement, though the facts are distinguishable ?          2. On the facts and in the circumstances of the case, whether the Income-tax Appellate Tribunal is legally correct in relying on its own decision in the case of Dr. Maya Chenoy v. Asst. CIT reported in [2009] 124 TTJ (Hyd) 692 though such decision is appealed against by the Department, to hold that the capital gains arise in the year of entering into development agreement ?     &....

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....endency of another matter cannot be a ground to proceed with the matter. Mr. Vasant Kumar further submits that in this case the learned Tribunal went wrong while holding that the transfer has taken place the moment agreement is entered into followed by possession for the purpose of computing capital gains, as, admittedly, in this case there was no payment of consideration and there has been only an agreement. He submits that the learned Tribunal has misread the judgment relied on by it. In the context of the above submission, we have to see whether in this case any substantial question of law is involved or not. The learned Tribunal on fact found as follows :             "In th....

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....y way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, any immovable property." While dealing with the submission of Mr. Vasant Kumar transfer is deemed to have taken place in the year when the consideration has been actually paid, we are of the view that the language of section 53A of the Transfer of Property Act, 1882, which has been engrafted in the aforesaid definition of section 2(47) of the Income-tax Act, 1961, does not contemplate any payment of consideration. We set out section 53A, which reads as under :  &nbsp....