TaxTMI 
TaxTMI 
2006 (9) TMI 135
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.... "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the amount received by the assessee-colonizer by way of advances or earnest money as a result of agreements to sell plots, did not constitute revenue receipts in its hands, as no sale deed had yet been executed?" 2. The facts noticed by the Tribunal are that the assessee M/s. Dhir and Company Colonisers (P.) Limited is a private limited company. For the assessment years under reference, trading additions of Rs. 28,770, Rs. 98,700 and Rs. 1,93,084 were made by the learned Income-tax Officer on the basis that these amount represented income of the assessee from colonization business. The facts in regard t....
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...., the assessee had succeeded in obtaining some sanctions and registration deeds' were executed in favour of the purchasers to the tune of Rs. 45,715 during the year ending March 31, 1987, and in a sum of Rs. 72,460 during the period ending March 31, 1988. It was also submitted that various refunds of earnest money received were also given to those purchasers in whose cases registered sale deeds could not be executed. The details of these cases were also furnished. In some cases, the assessee had also executed sale deeds notwithstanding the prohibition that they could not be registered. The assessee had entered into correspondence with the competent authority under the Urban Land Act. In some cases, some plots were sought to be sold in s....
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....on of sale could be said to be complete only with the transfer of title in hand. It was held that earnest money and part payments received could not partake of the character of profit nor could they be assessed as trading receipts. All the factors which influenced the mind of the Income-tax Officer in taxing the amounts in question were considered by the Gujarat High Court in that case and it was held that it was only on the completion of a transaction of purchase or sale culminating in the extinguishments of the title in vendor and simultaneous creation of the title in the vendee that the seller could earn profit or suffer a loss. The court also considered the doctrine of part performance embodied in section 53A of the Transfer of Property....
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....sessee. The plea of the assessee was upheld by the Tribunal and the High Court it was argued that the assessee being in beneficial enjoyment of the flats, was owner for purposes of income-tax. It was held that even though, under the common law, "owner" means a person who has got a valid title legally conveyed after complying with the requirements of the Transfer of Property Act, the Registration Act, etc., having regard to the ground realities and the object of the Income-tax Act, namely, "to tax the income", "owner" was the person who was entitled to receive income from the property in his own right. It was thus, held that the principles of common law, the Transfer of Property Act and the Registration Act were not conclusive for interpreta....