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TMI Blog1989 (9) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... ort-term capital gain, as assessed by the ITO. 4. The facts are that the assessee was allotted a plot of land bearing No. 129 by the Urban Estate Officer,PunjabatChandigarhon28-4-1972. Possession of the said plot was delivered to the assessee on24-7-73. The total price that the assessee was to pay for this plot measuring 500 sq. yd. was Rs. 13,500 and 15% thereof was to be paid within 30 days of the date of allotment. The allotment letter stated that after 25% of the amount had been paid, the assessee would have to execute a deed of conveyance in the prescribed form in such manner, as may be directed by the Estate Officer. The balance of 75% of the purchase price would be paid either in lump sum or in six equated annual instalments along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, therefore, they continue to belong to the assessee and could be included in his net wealth. The Hon'ble Supreme Court took into account the provisions of sec. 53A of the Transfer of Property Act relating to the effect of part performance of contract and held that in spite of the receipt of sale consideration and delivery of possession, the legal title remained with the vendor. 6. On behalf of the assessee reliance was placed on the case of Sunil Siddharthbhai v. CIT [1985] 156 ITR 509/23 Taxman 14W in which it was observed by Hon'ble the Supreme Court that in its general sense the expression "transfer of property" connotes the passing of rights in property from one person to another. In one case there may be a passing of the entire b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of these rulings, the learned counsel for the assessee contended that in pursuance of the allotment, the payment of a part of the price and the delivery of possession of the plot to the assessee, the assessee's right to continue in possession of the plot and to get a sale deed executed in his favour was an asset, which the assessee held from 24-7-73 and, it was, therefore, a long-term capital asset. 7. Reliance was also placed on certain provisions of the Punjab Urban Estates (Sale of Sites) Rules, 1965, in which there are certain statutory provisions which have already been included by the Estate Officer in the letter of allotment as terms of allotment. Rule 3 says that the sites in an urban estate shall be sold by the State Govt. by auc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght to remain in possession of the plot as a licencee subject to his getting a deed of conveyance executed according to the terms of the Act and the Rules. The transaction so arrived at by the payment of a portion of the price and the delivery of possession to the allottee certainly creates some valuable rights in favour of the allottee so as to amount to an asset within the meaning of the Wealth-tax Act and sec. 2(14) of the Income-tax Act, 1961. That was an asset held by the assessee up to30-1-1979, the date on which the assessee got a deed of conveyance executed in his favour. But that is not the capital asset that has been transferred by the assessee on29-10-1979. On the execution of a deed of conveyance in his favour on30-1-1979a mater ..... X X X X Extracts X X X X X X X X Extracts X X X X
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