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TMI Blog2022 (2) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... 23 - SUPREME COURT] as held that if the development agreement is not registered, it shall have no effect in law for the purposes of Section 53A which bodily stood incorporated in Section 2(47)(v) of the Income Tax Act, 1961. Thus, the Tribunal was right in allowing the assessee s appeal and granting the relief sought for.- Decided against the revenue. - ITAT NO: 60 OF 2020 Arising out of IA NO: GA 2 OF 2020, IA NO: GA 1 OF 2020 - - - Dated:- 4-2-2022 - HON BLE JUSTICE T.S. SIVAGNANAM A N D HON BLE JUSTICE HIRANMAY BHATTACHARYYA For the appellant: Mr. S. N. Dutta, Adv. Mr. Soumen Bhattacharjee, Adv. For the respondent: Mr. J. P. Khaitan, Sr. Adv. Mr. Sourav Chunder, Adv. Ms. Swapna Das, Adv. Re: IA NO: GA 1 OF 2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hort question which falls for consideration is as to whether the Tribunal has rightly interpreted the provision of Section 2(47)(v) of the Act. The question which arose for consideration before the Assessing Officer was whether pursuant to an un-registered agreement, possession of the property was handed over by the assessee to a company engaged in development of housing projects wholly owned by the State of West Bengal. The Assessing Officer completed the assessment vide order dated 29th December, 2011 holding that the assessee has accepted that possession was handed over. Challenging the said finding, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals)-XII, Kolkata [CIT(A)] specifically contending that possess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein the Hon ble Supreme Court on the very same issue has held as follows: The effect of the aforesaid amendment is that, on and after the commencement of the Amendment Act of 2001, if an agreement, like the JDA in the present case, is not registered, then it shall have no effect in law for the purposes of section 53A. In short, there is no agreement in the eyes of law which can be enforced under section 53A of the Transfer of Property Act. This being the case, we are of the view that the High Court was right in stating that in order to qualify as a transfer of a capital asset under Section 2(47)(v) of the Act, there must be a contract which can be enforced in law under section 53A of the Transfer of Property Act. A reading of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the JDA has no efficacy in the eye of law, obviously no transfer can be said to have taken place under the aforesaid document. Since we are deciding this case on this legal ground, it is unnecessary for us to go into the other questions decided by the High Court, namely, whether under the JDA possession was or was not taken; whether only a licence was granted to develop the property; and whether the developers were or were not ready and willing to carry out their part of the bargain. Since we are of the view that sub-clause (v) of Section 2(47) of the Act is not attracted to the facts of this case, we need not go into any other factual question. 21. However, the High Court has held that section 2(47)(vi) will not apply for the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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