Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 1041 - AT - Income TaxAddition on account of long term capital gains taxable in the hands of the assessee - JDA - transfer within the meaning of sub sections (ii) and (vi) of Section 2(47) - Held that:- Since no possession had been given by the transferor to the transferee of the entire land in part performance of JDA so as to fall within the domain of section 53A of the Transfer Act and consequently, section 2(47)(v) of the I.T. Act, did not apply, that further, willingness to perform their part of the contract was absent on the part of the developers, as it could not be performed by them, which was one of the conditions precedent for applying section 53A of the transfer Act. Further, in clause 26 of the JDA the principle of force majeure had been provided for, which would be applicable with full vigour in the circumstances. From the cumulative effect of the covenants contained in the JDA read with the registered special power of attorney it could not be held that the mandatory requirements of section 53A of the Transfer Act were complied with, which stood incorporated in section 2(47)(v) of the Act and once that was so, it could not be said that the assessees were liable to capital gain tax in respect of the remaining land which was not transferred by them to the developer/builder because of supervising event and not on account of any volition on their part - Decided in favour of assessee.
|