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2019 (4) TMI 1624 - AT - Income TaxCapital gain computation - transfer u/s 2(47) - year of taxability of capital gain - agreement to sell or execution of sale deed - extinguished the right in the property - monetary limit - HELD THAT:- There is no dispute that a registered agreement to sell was executed on 28.02.2004 between the assessee and M/s Rosebud Construction Pvt. Ltd. The said agreement to sell is exhibited. A perusal of the said agreement to sell clearly shows that the assessee has relinquished all his rights in the said property in favour of the vendee. As per the definition of transfer u/s 2(47) of the Act, transfer in relation to any capital asset means “extinguishment of any rights therein”. This clause clearly applies on the facts of the case in hand. Since the transfer has taken place in the year 2004, basis of charge i.e. 45(1) arose in the year 2004 as the said provision as well as any profits or gains arising from transfer of capital asset effected in the previous year shall be chargeable to income tax under the head capital gain and shall be deemed to be income as previous year in which transfer took place. Since the transfer has taken place in the year 2004, capital gains tax liability, if any, arose in that year. We, therefore, do not find any error or infirmity in the findings of the CIT(A). Long term capital gain liability, as determined by the Assessing Officer is 99.20 lakhs, 20% of tax on which comes to ₹ 19.84 lakhs. Therefore, this appeal by the Revenue is also hit by the CBDT Circular No. 3/2018 dated 11.07.2018 by which the Board has revised the monetary limit for filing of appeals by the department before the ITAT and the monetary limit has been fixed at ₹ 20 lakhs. In the light of the aforesaid CBDT Circular, the appeal filed by the Revenue is dismissed.
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