2014 (8) TMI 636 - ANDHRA PRADESH HIGH COURT

Liability to pay capital gains - Capital gain arise in the year of entering into development agreement or not – Held that:- While upholding the Tribunal's application of law, payment of consideration on the date of agreement of sale is not required, it may be deferred for future date - The element of factual possession and agreement are contemplated as transfer - When the transfer is complete, automatically, consideration mentioned in the agreement for sale has to be taken into consideration for the purpose of assessment of income for the assessment year when the agreement was entered into and possession was given - factually it was found that both the aspects took place in the previous year relevant to the assessment year 2003-04 – the Tribunal has rightly held that the assessee is liable to pay tax on the capital gains for the assessment year – Decided against Assessee.