TMI Blog2010 (2) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... y was sold four different lots. The assessee purchased a residential property for a total consideration of Rs. 10,70,000 and filed a return for the assessment year 1994-95 and reported a capital gain from the sale of the property treating the transfer of possession to the proposed vendees as having resulted in a transfer for the purpose of section 2(47). Thereafter she filed a statement revising the net capital gain claiming that there was no transfer during the assessment years 1993-95, 1994-95 and that the actual transfer was made in the assessment year 1995-96. The Assessing officer noticed that she had invested a sum of Rs. 4,60,000 in a site for the purpose of construction of residential house thereon and the unutilized capital gain ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an advance of. 40,000 and a further sum of Rs.7,10, 000 at the time of signing the agreement. As per the agreement, she should obtain a no objection certificate from the authorities concerned under Chapter XX-C of the Income t Act, 1961. Such a certificate was also obtained by her. However, she has not executed any sale deed in favour of the agreement holder. But on their request, she executed a power of attorney in favour of an individual by name S. Sivasubramanian, authorising him to do various acts with reference to the property including the execution of deed or deeds or conveyance. The property was sold in four different lots on March 1, 1995, and March 20, 1995. She purchased a residential property for a total consideration of Rs. 10, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ettinad Investments and the possession had been given, the subsequent sale deeds, having been executed by the power holder, were only in respect of a portion of the property and not the whole property and in that event, the essential requirements of section 53A are not satisfied. He would further submit that section 53A relating to part performance of the contract is based on equity principle and is intended only to see that the agreement holder should have a right to invoke the specific performance and such agreement holder should have a right of defence. 3. Mr. T. Ravikumar, learned senior standing counsel for income-tax cases, on the other hand, would submit that the various clauses in the agreement would show that the assessee had e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale deeds. The fact remains that the assessee had received the full sale consideration of Rs. 25, 00,000 from M/s. Chettinad Investments, namely, the agreement holder even before the power of attorney was executed. The contention of the learned senior counsel for the assessee is that the act of the assessee in selling the portion of the property third parties in subsequent years and executing the sale deeds in favour of such vendees by utilising the power of attorney granted to the partners of the firm has much relevance while considering the application of section 53A of the Transfer of Property Act. In our opinion, the said contention cannot be accepted. For application of section 53A the relevant consider ion would be the clauses in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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