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2019 (2) TMI 1343 - AT - Income TaxLong Term Capital Gains from the sale of immovable property u/s. 50C - reopening of assessment - HELD THAT:- AO computed the income from the sale of land under the head Capital Gain and determined the total income at ₹ 2,23,76,000/- and reduce an amount of ₹ 40,00,000/- from such amount considering such amount having been offered as value of consideration in the A.Y. 2007-08. The word “or assessable” inserted in Section 50C by Finance Act, 2009 with effect from 01/04/2009 is applicable from 2009-10 only and hence provisions of Section 50C cannot be applied in the year under consideration. Therefore, Capital Gain cannot be assessed u/. 50C in the case of assessee. Now property under consideration stood transferred on 15/07/2006 on handing over of the possession to Jhonson Electric Co. Pvt. Ltd. in compliance to Agreement for Sale dated 06.04.1993. Accordingly, subsequent transfer of the said property by Jhonson Electric Co. Pvt. Ltd. to Tanman Finvest Pvt. Ltd. vide Deed of Conveyance dated 08.05.2007 would result capital gain in the hands of Jhonson Electric Co. Pvt. Ltd. only. It is worthwhile to mention here that the Long Term Capital Gain on the basis of Deed of Conveyance dated 08.05.2007 has been assessed in the case of Jhonson Electric Co. Pvt. Ltd. vide an order u/s. 143(3) r.w.s. 147 dated 03.11.2010. Since Long Term Capital Gains on the basis of sale consideration disclosed in Conveyance Deed determined u/s. 50C has already been assessed in the case of Jhonson Electric Co. Pvt. Ltd. which had purchased the property from the assessee. Therefore, CIT(A) has rightly hold that property cannot again be assessed in the hands of assessee. - Decided against revenue.
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