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2017 (5) TMI 71 - AT - Income TaxCapital gains - development agreement - transfer of property or not - assessee claims that there was no transfer of property for the Assessment Year 2006-07 under the development agreement and no transfer of property can take place on the basis of unregistered development agreement dated 24/08/2005 - Held that - assessee as well as builder undisputedly acted upon the very same agreement dated 24/08/2005. Either assessee or builder at any point of time has not disputed the development agreement. Also, as per the agreement dated 24/08/2005, builder constructed the flats and assessee also cooperated with the builder and all the transactions are completed by the builder without any dispute with the assessee. Simply because, the agreement was not transferred, it cannot be said that the transfer has not taken place, unless either of the parties disputed unregistered agreement. If the builder was merely a licence he would not derive any interest in the subject property and would not be referred as vendor in the sale deeds. It is immaterial that Power of Attorney was not executed. Thus, the recitals in the sale deeds, narrating the developer also as, vendor of the property clearly show that the transfer of interest had taken place under the Development Agreement in favour of the developer and such transfer is liable for capital gains in this subject year, being the year of transfer of site for development. Insofar as levy of interest under section 234-B & 234-C are concerned, these are consequential in nature, hence, same is dismissed. Appeal dismissed - decided against assessee.
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