TaxTMI 
TaxTMI 
2008 (3) TMI 10
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....al No.75/1999-2000 and upheld order dated 26^th March, 1999, passed by the Assessing Officer holding the Asseessee is liable to pay capital gain tax under Section 45 of the Act read with Section 2(47) of the Act. 2. The Assessee, who is engaged in real estate business filed his return of income on 24^th December, 1996 declaring an income of Rs.3,24,930 (rupees three lakh twenty four thousand nine hundred and thirty). During the course of assessment proceedings it was noted by the Assessing Officer that apart from the profit declared by the Assessee in the real estate business for the previous year relevant to the assessment year under consideration the Assessee received a sum of Rs.2.34 crores in pursuance of an agreement sig....
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.... pendency of these proceedings the assessee Shri JK Kashyap, moved an application under order 1 Rule 10 CPC seeking to be made party to the proceedings on the averments that Shri JK Guha had entered into an agreement with him to sell his 1/3^rd share in the said property, the assessee also filed a suit for specific performance against Shri JK Guha being Civil Suit No.2312 of 1990, entitled JK Jashyap Vs. JK Guha and others in the High Court of Delhi claiming that Shri JK Guha had agreed to sell and transfer his share to the assessee for a consideration of Rs.25,00,000/- out of which an amount of Rs.3.7 lakhs had been already paid as part payment. However, this claim of the assessee was denied by Shri JK Guha and subsequently he entered i....
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....h.Praveen Nauuar and Sh.Ram Singh Chauhan and (iii) the vendee FMI Investment Pvt.Ltd. It was signed in London, U.K. wherein the vendee M/s FMI Investment Pvt.Ltd, was to purchase the property at 13-Golf Links, New Delhi. As per this agreement it was mutually decided that the 1^st, 2^nd and 3^rd parties (vendors) shall sell their ownership and priprietory rights in the property and the 4^th, 5^th and 6^th parties (assignors) shall assign all and whatever rights they claim. All the previous agreements claims and counter claims in respect of the said property were to come to an end and resolved. In consideration of this offer, representations and assurances, the 7^th party (vendee) was to pay a sum of Rs. 10 crores, which was to be d....
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.... 45 of the Act. 5. The order of Assessing Officer was challenged by the Assessee before CIT(A). 6. CIT(A) in his order held that since the possession of the property has not been given to the buyer and the transfer has not taken place as such the transactions are not complete, so there cannot be any liability to charge of capital gains, either short term or long term. Therefore, the addition made by the Assessing Officer was deleted by CIT(A). 7. Aggrieved with the order of CIT(A), Revenue filed an appeal before the Tribunal and the Tribunal vide impugned order, set aside the order passed by CIT(A) and allowed the appeal filed by Revenue. 8. It has been contended by learned counsel for the Assessee that under Section 2(47) of th....
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....ve definition of transfer in relation to capital asset and extinguishment of any right in the capital asset is also considered to be a transfer for the purpose of the Act. 12. The combined reading of the above provisions of law makes it clear that transfer of capital asset is not confined to the transfer of immovable property only but its scope is much wider for the purpose of the Act. Section 45(1) of the Act would apply even if the consideration is received from a party other than the one in whose favour the transfer is effected. 13. The word transfer under Section 2(47) has a very wide meaning and its meaning cannot be narrowed down by referring to the provisions of other statues. 14. In the present case, the Assesse....
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....premises which was agreed to be partitioned and thereafter to be sold to the plaintiff." 16. Moreover in the agreement to sell dated 26^th September, 1995 in which the Assessee is the fourth party and he along with Fifth party, has entered into an agreement to purchase the undivided 2/3^rd rights and undivided shares of first and second parties for a total consideration of Rs. 2 crore. 17. The Assessee has also placed on record copy of his statement recorded in suit No.2312/90 filed in this Court, which reads as under:-" Statement of Mr.J.K.Kashyap, Plaintiff on S.A. and of counsel for the parties: The parties have arrived at a settlement an agreement of sale has been entered into M/s FMI Investment Pvt. Ltd. Has today handed....