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2021 (8) TMI 1140 - AT - Income TaxUnderstatement of income - treatment of lease transactions as sales transaction - - Transfer of property under lease - Lease deed is unregistered one - efficacy of registration of lease deed and the impact of the same when it is unregistered one - HELD THAT:- Hon’ble Kerala High Court in the case of CIT v. C.F.Raju [2006 (6) TMI 509 - KERALA HIGH COURT] had followed the judgment of case of Anthony v. K.C.Ittoop & Sons [2000 (7) TMI 970 - SUPREME COURT] and held that even though the lease deed is unregistered, the same would not stand in the way to determine whether there is in fact a lease. In the instant case, the assessee is a statutory body constituted u/s 5 of Karnataka Industrial Areas Development (IIADB Act), 1966. The KIADB Act, 1966 is a special Act, which provides for expeditious acquisition of land for industrial and infrastructure purposes. The Income Tax Authorities has not doubted the legal effect of the lease deed (being unregistered one). When the lease is transfer of right to enjoy the property, such transfer can be made expressly or by implication. The mere fact that it is an unregistered lease deed would not stand in the way to determine whether in fact it was a transfer of property under lease - Appeal filed by the assessee is allowed.
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