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TMI Blog2016 (10) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... ying section 53A of the transfer Act. Further, in clause 26 of the JDA the principle of force majeure had been provided for, which would be applicable with full vigour in the circumstances. From the cumulative effect of the covenants contained in the JDA read with the registered special power of attorney it could not be held that the mandatory requirements of section 53A of the Transfer Act were complied with, which stood incorporated in section 2(47)(v) of the Act and once that was so, it could not be said that the assessees were liable to capital gain tax in respect of the remaining land which was not transferred by them to the developer/builder because of supervising event and not on account of any volition on their part - Decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial on record, we found that matter can be disposed off even in the absence of assessee or her counsel. 3. Briefly stated, the facts of the case are that the assessee filed her return declaring an income of ₹ 26,71,000/- on 31.03.2010. Later on, the AO received the information from the CCIT, Ludhiana and on the basis of the same, the case was reopened and after considering the reply of the assessee, the AO worked out the capital gain on sale of land at ₹ 1,81,25,000/- and after allowing already declared capital gain of ₹ 25,87,213/- made an addition of ₹ 1,56,21,580/-. 4. Aggrieved with the order of the AO, the assessee went in appeal before the ld. CIT(A), who allowed the appeal of the assessee observing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the amount. Only then can it be said that for the purposes of taxability, the income is not hypothetical and it has really accrued to the assessee. It was observed as under: First of all, It is now well settled that income tax cannot be levied on hypothetical income. In Commissioner of Income Tax vs.. SShoorji Valaibhdas and Co., [1962] 46 ITR 144 (SC) it was held as follows: Income-tax is a levy on income. No doubt, the Income-tax Act takes into account two points of time at which the liability to tax is attracted, viz., the accrual of the income or its receipt; but the substance of the matter is the income. If income ? does not result at all, there cannot be a with law. In view of the aforesaid stand, . while disposing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute is squarely covered in favour of the assessee and against the Revenue by the decision of the Hon ble High Court of Punjab Haryana in the case of Charanjit Singh Atwal vs. CIT , vide order, dated 22.07.2015, passed in ITA No.200 of 2013 (O N), reported as 279 CTR 330 (P H), wherein, it has been held that since no possession had been given by the transferor to the transferee of the entire land in part performance of JDA dated 25.02.2007 so as to fall within the domain of section 53A of the Transfer Act and consequently, section 2(47)(v) of the I.T. Act, did not apply, that further, willingness to perform their part of the contract was absent on the part of the developers, as it could not be performed by them, which was one of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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