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2018 (10) TMI 1104 - AT - Income TaxAddition made u/s 56(2)(vii)(b)(ii) on account of purchase of immovable property - transfer of capital assets - date of the agreement with regard to the sale of the property - bogus transaction - Held that:- The term transfer U/s 2(47)(v) read with Section 53A of the Transfer of Property Act includes if a right in the property is transferred by one person to another person thereby the said right get extinguished from transferor and vested with the transferee by virtue of an agreement to sell then to that extent it amounts to transfer of capital assets. Even otherwise the deficiency of registration in the agreement was subsequently made up as the sale deed was executed and registered and therefore, the transaction of transfer would take effect from the date of agreement which was subsequently culminated into the sale deed. Accordingly when the agreement to sell dated 28/3/2013 has not been held to be bogus then the transaction would be treated to have been completed on 28/3/2013 and consequently the same would not fall in the year under consideration. Once the transaction of purchase of property in question is completed in the preceding year then the provisions of Section 56(2)(vii)(b) of the Act cannot be invoked on such transaction. - Decided in favour of assessee.
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