A entered into a sale agreement with B for the sale of Agricultural land and transferred the possession of the property. B paid the entire sale consideration to A , inturn, A endorsed GPA in the name of B. The registration of transfer has not been done yet. After 2months B converted the the land and entered into sale agreement with C.
By examining the above transaction the AO asked A to pay the CG tax, saying that the sale from A to B has not been completed and it amounts to sale of Capital asset, as converted land is covered by the Capital asset definition.
I took the view that as per 53A of Transfer of property act the sale is completed by the part performance by A&B and there by A is not liable to Pay any tax.
Kindly refer any caselaws either supporting or Contradicting with the above views
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