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Issues:
- Validity of transfer of land due to unregistered sale deed - Inclusion of cash consideration in wealth of assessee - Exemption of agricultural land from wealth calculation - Obligation to refund consideration in case of failed title transfer - Estoppel under section 53A of the Transfer of Property Act - Application of section 65 of the Contract Act in refund obligation Analysis: The judgment by the Appellate Tribunal ITAT Indore involved two appeals by the assessee against a consolidated order of the AAC of Wealth-tax regarding the assessment years 1983-84 and 1984-85. The primary issue revolved around the ownership transfer of agricultural land through an unregistered sale deed and the subsequent inclusion of the cash consideration in the wealth of the assessee. The assessee argued that since the sale deed was unregistered, there was no valid transfer of land, and the consideration received was merely an advance sale price refundable in case of title failure, citing the judgment in Nawab Sir Mir Osman Ali Khan v. CWT. The Departmental Representative contended that the sale was complete despite lack of registration, as possession was delivered earlier, and the purchaser was responsible for legal formalities and potential acquisition compensation. The Tribunal sided with the Departmental Representative, emphasizing that the assessee had relinquished ownership, delivered possession, and received full consideration, precluding any obligation to refund. The principle of estoppel under section 53A of the Transfer of Property Act was invoked, stating that the purchaser's adverse possession would solidify their title. Additionally, the judgment referenced Kuju Collieries Ltd. v. Jharkhand Mines Ltd. to highlight that no refund obligation existed due to the nature of the agreement. Ultimately, the Tribunal dismissed both appeals, affirming the inclusion of the cash consideration in the assessee's wealth, as there was no liability to refund, and the sale was deemed complete despite the lack of registration. The judgment underscored the legal principles governing property transfers and obligations arising from such transactions, providing a comprehensive analysis of the issues at hand.
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