TaxTMI 
TaxTMI 
2003 (7) TMI 51
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....eyed RCC building standing thereon and having a built-up area of 7790 sq. ft. The aforesaid agreement was entered into between Srimati Bimla Devi Agarwalla, Sri Praveen Kumar Agarwalla, and the appellant-assessee for the consideration of Rs. 27,51,000. It is the assessee's case that the entire amount of consideration has been paid and in pursuance of the sale agreement the property was taken possession of on a subsequent date. Later on, the vendor of the assessee has executed a power of attorney on February 21, 1992, authorising one of the directors of the assessee, namely, Sri Ashok Kumar Deorah, to transfer the property in favour of the assessee or its nominee and, accordingly, the property was transferred to the Government of Mizoram for....
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....thority has held that the property in question was transferred in favour of the assessee and the income earned out of the transfer of the property to the Government of Mizoram would be in the nature of short-term capital gain and not income from other sources and passed the order accordingly. The Department, being aggrieved by the order of the appellate authority, has preferred further appeal to the Tribunal. The Tribunal took the view that the agreement to sell does not confer any right, title and interest in the assessee as it was not a transfer. Any transfer of immovable property valued at more than Rs. 100 has to be effected by registered sale deed and in the absence of any registered sale deed, the property cannot be held to be transfe....
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....t appeal by the assessee in the High Court. The appeal is admitted on the following substantial question of law: "Whether in view of the facts and circumstances of the case and in view of the fact that the ownership of the appellant over the said property having been accepted by the learned Tribunal, the learned Tribunal was legally justified and correct in holding that the income derived from the sale of the said property by the appellant should be treated as income from other sources solely on the ground that the title deed to the said property was not registered?" To appreciate the rival contentions, it would be beneficial to quote the relevant provisions of section 2(47) of the Income-tax Act. "2. (47) 'transfer', in relatio....
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....ntinues to be in possession in part performance of the contract and has done some act in furtherance of the contract. In the present case, the agreement dated January 2, 1992, is admittedly a contract in writing executed by the transferor of the assessee signed by them for the consideration and in pursuance of such agreement, the assessee has been placed in possession of the property. The ingredients requisite for application of section 53A of the Transfer of Property Act are fully satisfied in the present case and, therefore, the property has been deemed to have been transferred to the assessee within the meaning of section 2(47) of the Income-tax Act. Once the interest in the property is transferred to the assessee under the agreement,....