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2014 (3) TMI 181 - HC - Income TaxRelevant date of transfer u/s 2(47) of the Act Nature of gains LTCG or STCG - Whether the date of MOU i.e 22/06/2001 or 11/02/2004 i.e. the date of payment of entire amount of Rs.3 crores as per MOU is to be considered as date of transfer as defined under Section 2(47) of the Act Held that:- The possession of the property was not handed over to the assessee as on the date of MOU in 2001 - The terms and conditions of MOU clearly indicates that property will not be transferred either in the name of appellant/assessee or his nominee till entire amount agreed upon as per the terms of MOU is paid - Mere MOU would not confer any right to assessee to transfer the property in favour of third parties - The right is acquired only after payment of entire amounts as per MOU - It would happen only with the fulfilment of terms and conditions under MOU which apparently occurred in 2004. Whatever right accrued to assessee under MOU accrued only with the complete payment of amounts as per the terms and conditions of MOU on 11/02/2004 - Till this right accrued to the assessee, he could not have ventured to transfer any limited right accrued to him under MOU, to third parties - In the absence of any regular document of conveyance in his favour or unless M/s.Damodar Sons & Co joined him in signing the documents of sale deed, he could not have transferred any right even if it was limited right - The execution of sale deed occurred in 2005 - the right accrued to assessee in 2004 came to be transferred along with M/s.Damodar Sons & Co only in 2005 thus, the Assessing Officer was justified in saying it is a short term capital gain and not long term capital gain Decided against Assessee.
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