January 2025
Capital gains — Transfer — Possession taken in part performance of contract — Agreement must be registered — Joint Development Agreement — Not registered — Ownership of capital asset retained by Assessee throughout — Possession clauses suggesting possession to be parted with for limited purpose of development — Unregistered agreement not effecting transfer of property u/s. 2(47)
68 Prithvi Consultants Pvt. Ltd. vs. Dy. CIT
[2024] 470 ITR 37 (Bom.)
A.Ys. 2005-06 to 2011-12
Date of order: 5th September, 2023
S. 2(47)(v) of ITA 1961, Ss. 17(1A) of Registration Act, 53A of Transfer of Property Act 1882
Capital gains — Transfer — Possession taken in part performance of contract — Agreement must be registered — Joint Development Agreement — Not registered — Ownership of capital asset retained by Assessee throughout — Possession clauses suggesting possession to be parted with for limited purpose of development — Unregistered agreement not effecting transfer of property u/s. 2(47)
In December 2008, the Assessee entered into two Joint Development Agreements (JDA) in respect of two plots of land. These agreements were not registered as required u/s. 17(1A) of the Registration Act. A search and seizure action was carried on in the case of one Mr. PK and others, where the said two JDAs were found. The Department issued notice u/s. 153C of the Act requiring the Assessee to file return of income for the AY 2009-10. Subsequently, notices were issued u/s. 153A and 142(1) for the AYs 2005-06 to 2010-11 as well as notice u/s. 143(2) for AY 2011-12 to conduct inquiry and the assessment of the Assessee’s income. In response to the no
