No Reason For AO To Believe Income Chargeable To Tax Escaped Assessment: Bombay High Court
Live LawThe Bombay High Court has held that the development agreement permitted construction on the land only as a licensee, which did not have the effect of transmitting possession in favor of the licensee as per Section 53A of the Transfer of Property Act.The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that there was neither any tangible material nor any. The Bombay High Court has held that the development agreement permitted construction on the land only as a licensee, which did not have the effect of transmitting possession in favor of the licensee as per Section 53A of the Transfer of Property Act. The division bench of Justice Dhiraj Singh Thakur and Justice Kamal Khata has observed that there was neither any tangible material nor any reason for the assessing officer to believe that "any income chargeable to tax had escaped assessment,". Granting a license to the developer, who entered into the assessee’s land for the purpose of development, did not amount to "allowing the possession of the land" as per Section 53A of the Transfer of Property Act, 1882.