Capital Gain Applicability

As per 2(47) of IT Act, transfer includes any transaction involving the allowing of the possession of an immovable property to be taken or retained in part performance of a contract of the nature referred to in sec 53A of the Transfer of Property Act, 1882.

53A of TP Act says that when documents are not registered, the ownership in the property is transferred if there is

1. a contract in writing

2.transferee has paid the consideration or is willing to perform his part of the contract

3.transferee shouldd have taken possession of the property.

So in this case, even though the transfer is not registered, it attracts capital gains.

For your second question

payment made to obtain vacant possession of property as a pre condition to effect sale shall be considered to be expenses in connection with transfer & deducted from sale consideration

CIT Vs Miss Piroja C.Patel (2002) 122 Taxman 752 (Mum)