TMI Blog2006 (6) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... levant assessment year had earned a long-term capital gain of Rs. 20,05,113 on sale of shares which had been claimed exempt under s. 54F of the IT Act. The assessee claimed that it had invested the sale consideration in construction of residential house within the period of three years as required under s. 54F. The land on which the house was constructed belonged to the husband of the assessee. The assessee explained to the AO that as per collaboration agreement dt. 15th Dec., 2000, the assessee as a developer had agreed to construct the residential building on the plot owned by the husband and in which share of the assessee was 50 per cent. The AO, however, did not allow the claim on the ground that the title of the property had not been t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that there was no dispute that the assessee was the owner of super structure built on the land belonging to the husband. The assessee had constructed the residential house as per the agreement and was owner of 50 per cent of the house in terms of the sale agreement. Under the provisions of law, it is not necessary that the assessee should be the holder of registered title in respect of the property in order to become owner. In terms of the provisions of s. 27(iiia), a person is deemed to be owner if he has taken possession of the house in part performance of the contract referred to in s. 53A of the Transfer of Property Act. He also relied on the following judgments in which under similar circumstances it had been held that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art performance of the contract, referred to in s. 53A of the Transfer of Property Act is deemed to be an owner of the building. As per the provisions of s. 53A, if a person contracts to transfer any property or part thereof for consideration and the transferee has taken the possession in part performance of the contract and the transferee has performed and is willing to perform his part of the contract, the transferor is debarred from enforcing any right against the transferee in respect of the said property. Thus, registration of the property in the name of the holder is no longer necessary. 4.1 Merely because in this case, the contract is between husband and wife, it cannot be said that the assessee is not owner of the 50 per cent of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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