Madhu Kaul ITA 89/1999 dated 17-01-2014 (P&H)
Vinod Kumar Jain ITA 140/2000 dated 24-09-2010 (P&H)
Ved Parkash and sons (HUF), (1994) 207 ITR 148 (P&H)
The above Judgments have drawn support from Circular No. 471 of CBDT on self financing scheme of DDA, which said that “The allottee gets title to the property on the issuance of the allotment letter and the payment of instalments is only a follow-up action and taking the delivery of possession is only a formality.”
The Courts have upheld the above position of law inspite of instalments to be paid later in point of time and stipulations regarding cancellation of allotment in case of default.
It may also be Interesting to Quote Para 15 of Ved Parkash and Sons (supra) which has said that as per Supreme Court in Jagdish Chand Radhey AIR 1972 SC 2587, the event of some default with regard to payment of instalments which might have been committed by an allottee does not give a right to the Government to resume the land or building and at best it is entitled to recover the amount due on account of non-payment of some of the instalments. The court upheld the same position for private builders also.
P&H High Court also held that even if it be taken that some amount was yet to be paid by the assessee in terms of the agreement, all the same it cannot be construed that he had no right or interest in the property but was a licensee.