TMI Blog2013 (11) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... some income accrues to him. An unexecuted agreement does not give rise to earning or accrual of income. Tax can be imposed on real income and not on hypothetical income. It is true that a tripartite agreement was entered into among the tenants, including the assessee, developer and the owner of the property. But it is also a fact the because of the orders of the BMC said agreement could not be implemented - Inspector proved that on that particular date property was occupied by the assessee as a tenant, that there was no change in his position vis-à-vis the owner, that rent receipts, electricity and MTNL Bills, Passport proved that assessee was in possession of the tenanted premises – Decided against the Revenue. - ITA No. 2953/Mum/2012 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent to DCHSL, that on 09. 05. 2007Society had entered into a development agreement with Sachinam Estate Developers Pvt. Ltd. (SEDPL)for the developing of the said society premises, that as per the development agreement SEDPL was to demolish the existing structure and had to provide the tenants alternative accommodation in the newly constructed building, that as per the agreement dated 09. 05. 2007 assessee was to receive two flats initially, that vide another agreement dated 25. 7. 2007 SEDPL had agreed to give an additional flat on ownership basis to the assessee, that the market value of the said flat as per the stamp duty authorities was Rs. 46. 37 lacs. AO was of the opinion that assessee had received properties worth Rs. 1. 39 Crores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancy rights subject to the condition, that assessee was given possession of the alternative accommodation, that it was neither sale of tenancy rights nor purchase of new property by the assessee, that it was not an exchange, that two properties did not existed, that alternate accommodation to be provided to the assessee had to come in to existence, that the agreements were entered into for the purpose of developing the entire property. Referring to the clauses- 7, 9 and 16 of the agreement, he held that the agreements dated 09. 05. 2007 and 25. 07. 2007 did not transfer any capital assets. He further held that field visit by the Inspector proved on that on that particular date property was occupied by the assessee as a tenant, that there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lace because of court proceedings, that assessee had not got possession of any of the flats, that he was staying in the same premises till the inspector of income tax had visited him, that no income or gain had accrued to the assessee during the year under consideration. 5. We have heard the rival submissions and perused the material before us. We find that FAA has given categorical finding of facts that the surrender of tenancy rights;as contemplated in clause 16 of the impugned agreement;had not taken place during the year under consideration, that there was no taxable event giving rise to capital gains on account of the impugned agreement, that asssessee had not to pay any tax on alleged capital gains. We further find that inspector of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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