TaxTMI 
TaxTMI 
2017 (5) TMI 71
X X X X Extracts X X X X
X X X X Extracts X X X X
.... brief, are that the assessee is having income from house property and petty contract, filed his return of income by declaring total income of Rs. 98,247/- on 27/05/2006. The return field by the assessee was processed under section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). Thereafter, case of the assessee was reopened by issuing notice under section 148 of the Act and after following due procedure, assessment was completed under section 143(3) read with sec. 147 of the Act by bringing short term capital gains of Rs. 50,21,060/- and total income was determined at Rs. 51,20,310/-. In the assessment order, Assessing Officer has noted that the assessee had entered into an agreement with M/s. Sai Ganesh B....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d determined short term capital gain at Rs. 50,21,060/-. 3. On being aggrieved, assessee carried the matter in appeal before the ld. CIT(A). The main argument before the ld. CIT(A) was that there was no transfer of property for the Assessment Year 2006-07 under the development agreement and no transfer of property can take place on the basis of unregistered development agreement dated 24/08/2005. The ld. CIT(A) has considered the arguments raised by the assessee and passed a detailed order and held that even though, the development agreement is not registered, both the parties have acted upon the very same development agreement and the capital gain has to be taxed in this subject year and confirmed the order of the Assessing Officer. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....thout any dispute with the assessee. Simply because, the agreement was not transferred, it cannot be said that the transfer has not taken place, unless either of the parties disputed unregistered agreement. The ld. CIT(A) has considered the arguments raised by the assessee and held that short term capital gain has to be taxed in the Assessment Year 2006-07. For the sake of convenience, the relevant portion of the order is extracted as under:- "5.5 I have considered the submissions. It is not in dispute that the assessee had entered into a development agreement with the builder M/s. Sai Ganesh Builders on 24/08/2005 in respect of the subject site purchased by him in 2004. It is not in dispute that the development agreement was unregistere....
X X X X Extracts X X X X
X X X X Extracts X X X X
....notice u/s.148 in the impugned assessment order, in which it is categorically mentioned that 'transfer' had taken, place under development agreement and the resulting capital gain arising from the transfer of 707-2 sq-yards of site given for development during the year is assessable for this year. Hence, I am of the view that there is no infirmity in the action of the AO in taking action u/s.147 of the IT.Act, and the impugned notice issued by the AO u/s.148 is held to be valid. 5.6 The assessee has submitted that all the sale deeds in respect of completed apartments were executed by the assessee in his capacity as owner, and on that basis it was argued that there was no 'transfer' under the development agreement and that....