9911796707
TMI Blog1986 (7) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... y made by the ITO on account of profits earned on instalments received for the sale of plot. It has, therefore, been, prayed that the orders of the AAC be set aside and those of the ITO restored. 4. Before considering the issues involved, it would be worthwhile to state in brief the facts, of the case. During the three accounting periods relevant to the assessment years under appeal, the assessee was engaged in the business of developing housing colonies. The activities of the assessee were related to the purchase of land and its sale to the persons who wanted to construct houses on those plots. By the end of the accounting period relevant to the asst. yr. 1978-79 the assessee was said to have acquired land measuring nearly 78231 sq. yar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t during the accounting period relevant to the asst. yr. 1978-79. 5. For the asst. yr. 1981-82 and 1982-83, the ITO brought to tax such amounts at Rs. 4,878 and Rs. 15,810 respectively. These incomes were added to the returned income of the assessee. 6. These additions were challenged in appeals before the AAC. It was urged before him that no income was includible in the income of the assessee in the ratio of the Gujarat High Court judgement in the case of CIT vs. Asha Land Corporation (1981) 25 CTR (Guj) 294 : (1982) 133 ITR 55 (Guj) as the sale deed had not been executed and registered. Another judgment relied upon was of the Bombay High Court reported in CIT vs. Zoroastrians Building Society Ltd. (1976) 102 ITR 499 (Bom). It was al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to all intents and purposes, except the sale deed in his favour, then he was liable to tax under s. 22. It was held that the assessee occupied the property after execution of the agreement of sale in the his favour in the year 1964 and after completion of the building, he was in a position to earn income from the property sold to him. Further the entire consideration was paid to the vendor earlier at the time of the execution of the agreement to sell in 1964 and no payment was made at the time of execution of the registered sale deed in 1969. Therefore, the Tribunal was right in holding that the income from the self-occupied property was includible in the assessee's income for the asst. yr. 1968-69 and 1979-80. The ld. departmental repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istered and there were also sales which could not be registered because the assessee himself did not acquire the title by a registered sale deed. The assessee could not pass a better title through a registered deed but still sold those properties. It is to be noted that he sold his right of possession with all easement right to the purchasers who not only took the possession but also put up further constructions thereon. Similarly in the case of lands which are registered in favour of the assessee but sale deeds are not registered in favour of the purchasers but for all intents and purposes these have been parted with by the assessee and given possession to the purchasers who in certain cases have also put up construction thereon, it has to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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