AO made addition in respect of capital gain arising from transfer of flats . Tribunal found that during relevant year an agreement to sell had been executed as flats were yet to be constructed. Tribunal further held that since possession had not been delivered, provisions of section 53A of Transfer of Property Act, 1881, would not apply and, therefore, sub-clause (v) of section 2(47) would also not apply. High Court affirmed the order of the Tribunal.
CIT v. Sadiq Sheikh. (2019) 106 taxmann.com 333 / 264 Taxman 170 / 197 DTR 191/ 318 CTR 382 (Bom.)(HC)/CIT v. Sadia Sheikh (2020) 429 ITR 163 / 122 taxmann.com 39 /(2021)276 Taxman 292/ 197 DTR 191/ 318 CTR 382 (Bom.)(HC) Editorial : SLP of revenue is dismissed, CIT v. Sadiq Sheikh. (2019) 264 Taxman 169 (SC)
S. 45 : Capital gains-Transfer- Agreement to sell flats which were yet to be constructed–No transfer has taken place during the year -Not assessable as capital gains. [S.2(47)(v), Transfer of property Act, 1881, S. 53A]