TaxTMI 
TaxTMI 
2012 (2) TMI 547
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....377; 14,82,438/-. The original assessment was completed on 25.1.2006 determining total income of the assessee at ₹ 3,30,150/- and agricultural income of ₹ 13,82,458/-. Thereafter, the ld. CIT has set aside the order u/s 263 giving the specific directions for re-valuation of capital gain and also to verify the status of the agricultural income. Consequently, the AO issued statutory notice u/s 142(1) of the Income Tax Act, 1961 (in short the Act). During the course of assessment proceedings, the AO observed that the assessee has acquired the property in Bangalore on lease in October 1990. The property was taken on lease for a period of 10 years and the assessee held the property as tenant from the date of taking its possession and....
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....sessment Year: 2003-04) the grounds in treating the short term capital gain arising from sale of property as against the long term capital gains claimed by the assessee. 5. At the time of hearing, the ld. Counsel for the assessee submits that the residential site No. 3/61/12 in Kadirenahally, Layout II, BMC ward No.55, Bangalore-560070 was acquired by the assessee from Jayanagara Housing Co-operative Society on lease cum-sale agreement registered on 30.10.1990. The assessee had paid full cost of the site on 30.10.1990 and the possession thereof was given on 2.1.1991 as per Possession certificate No. PC 205/K1568/II Stage dated 2.1.1991. The above lease was converted into sale deed on 30.12.2002 but no further payments were made for the abo....
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....describing her as lessee/purchaser. This agreement therefore, cannot simply dubbed as mere lease agreement. By its very heading, it is referred to as lease-cum-sale-Agreement to sale. As per Clause (1), the lessee- purchaser i.e the assessee is put in possession of the property and she has paid full consideration on that day and all that she was required to pay further ₹ 5/- per year. The interpretation of the whole document very clearly establishes that the property came into possession of the assessee as early as in 1990 as per the Agreement to sell and on payment of full consideration. The ld. Counsel for the assessee while relying on the decisions in (a) CIT V/s Podar Cement Pvt. Ltd. (1997) 226 ITR 625 (SC), (b) Mysore Minerals L....
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....e No.PC 205/K 1568/II dated 2.1.1991 issued by the Vendor. The assessee has also agreed to pay the sum of ₹ 5 per year as lease rent on or before 30th June of each year during the lease period. It has also been agreed that the property shall not be put to use except residential purposes without the consent in writing of the lessor/vendor. We further find that the above lease was converted into sale deed vide registered sale-deed dated 30.12.2002, wherein it has been mentioned that the purchaser (assessee) has paid the full value of the property ₹ 15944.50 (13,944 + 2000 penalty). We further find that the said property was sold by the assessee vide registered sale deed dated 3.1.2003 for ₹ 24,00,000/-. According to the AO ....
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....y of any agreement or any arrangement whereby such person acquires any right in any building which is either being constructed or which is to be constructed. Transactions, of the nature referred to above are not required to be registered under the Registration Act, 1908. Such arrangements confer the privileges of ownership without transfer of title in the building and are a common mode of acquiring flats particularly in multi-storeyed constructions in big cities. The definition also does not cover cases where possession is allowed to be taken or retained in part performance of a contract, of the nature referred to in section 53A of the Transfer of Property Act, 1882. Now subclauses (v) and (vi) have been inserted in section 2(47) to prevent....
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....s of law such as the Transfer of Property Act, the Registration Act, etc., in the context of section 22 of the Income-tax Act, 1961, having regard to the ground realities and further having regard to the object of the Income-tax Act, namely, to tax the income, "owner" is a person who is entitled to receive income from the property in his own right. The requirement of registration of the sale deed in the context of section 22 is not warranted." 11. In Mysore Minerals Ltd. (supra), it has been held (headnote): "Held, reversing the judgment of the High Court, that the finding of fact arrived at in the case at hand was that though a document of title was not executed by the Housing Board in favour of the assessee, the houses were a....