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2016 (1) TMI 1215 - AT - Income TaxCapital gain computation - Section 50C applicability - property transferred through oral family settlement - whether sec 50C would not apply in the case of the assessee because no Sale Deed is registered and that Section 50C of the Act was amended w.e.f. 01.10.2009 adding the word 'assessable'? - Held that:- No sale deed has been registered and the property was taken by the nephews of the assessee through verbal family settlement in the month of January,2008 which was confirmed by the judgement of the Civil Court dated 07.03.2009. Therefore, in the case of the assessee, no consideration has been assessed by the Stamp Valuation Authority. Since no sale deed or agreement have been registered in the case of the assessee, therefore, provisions of Section 50C would not apply in the case of the assessee. The word 'assessable' has been inserted in Section 50C Act w.e.f. 01.10.2009 therefore, the amended provisions would not apply to assessment year under appeal i.e. 2009-10. Merely the assessee has shown capital loss in the return of income would be of no consequence when Section 50C of the Act is not applicable in the case of the assessee. In this view of the matter, it is clear that provisions of Section 50C of the Act would not apply in the case of the assessee, therefore, no long term capital gain could be computed as is done by the authorities below in the case of the assessee. The authorities below have failed to take note of the fact that the plaintiffs Vinay Verma etc. have mentioned in the plaint that the family settlement take place between the parties i.e. the nephews of the assessee and the assessee in the month of January,2008 and since then, the plaintiffs are in ownership and in possession of the property. The claim of the plaintiffs have been admitted by the assessee as defendant in that suit by admitting the claim of the plaintiffs and prayed that decree may be passed accordingly. The Civil Court, on the basis of these facts, admitted the claims of the plaintiffs and decreed the suit for declaration vide judgement dated 07.03.2009 therefore, it is clear that the property was transferred in the month of January,2008 through oral family settlement, therefore, assessee rightly contended that no long term capital gain arise in assessment year 2009-10 because this may pertain to preceding assessment year 2008-09. Therefore, on this point also, the addition against the assessee is wholly unjustified. Thus we are of the view no capital gain arise in the case of the assessee in assessment year under appeal. - Decided in favour of assessee
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