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2013 (11) TMI 816 - ITAT HYDERABADAddition made u/s 50C of the Income tax act on sale of land - Assessee has entered two agreements for sale of property on 31-03-2006 - Consideration was received substantially in FY 2006-07 – Held that:- These two agreements of sale entered on 31-03-2006 were not registered. Once the documents were not registered, invocation of provisions of section 50C for adopting the same stamp value does not arise. This issue was already crystallized by various orders of ITAT wherein it was held that when sale agreement was not registered, provisions of section 50C of the Act, would not apply – Reliance has been placed on the judgment in the case of ITO Vs. Kumudini Venugopal [2011 (4) TMI 940 - ITAT, CHENNAI] – Decided in favor of Assessee. Year of chargeability of capital gains - Held that:- If we go by the provisions of section 2(47) of transfer, as per the revised agreement, even the condition of transfer was not completed till the balance consideration was received even as per the revised agreement dated 07-01-2008, therefore, provisions of section 2(47) on deeming the transfer under the Transfer property Act, does not arise in AY 2007-08. - Since the amount is not taxable as such in AY 2007-08 and Assessee's counsel fairly admitted that Assessee is willing to get the same taxed in AY 2008-09 as the document was registered in that year, accordingly directed the AO to bring capital gains on the sale of property in AY 2008-09 and if required invoke provisions of section 50C in that year. Therefore, the capital gains to that extent offered by Assessee in this assessment year has to be excluded - The AO is directed to exclude in AY 2007-08 and include the capital gain in AY 2008-09, for which necessary proceedings can be initiated, if not done.
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