Development agreements require legal possession or effective enjoyment for capital gains transfer; permissive possession and deferred consideration defer taxation.

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....A development agreement does not necessarily constitute a transfer of immovable property under sections 2(47)(v) or 2(47)(vi) where possession is merely permissive, legal rights remain with the landowner, construction is incomplete, and consideration is not received during the relevant year. Applying the section 53A part-performance standard and the real income principle, the Tribunal's reasoning was that no legal possession, enjoyment, or income had accrued to the assessee in AY 2012-13. Accordingly, no transfer of the capital asset occurred and capital gains were not chargeable for that year. The capital gains addition was deleted, while the section 54F deduction claim was treated as academic.....