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2021 (2) TMI 426 - AT - Income TaxCapital gain by invoking the provisions of section 50C - Year of assessment - HELD THAT:- There was no device adopted by the Assessee to ensure that provisions of Sec.50C of the Act were not applicable to his case. Secondly, the registration was completed in the case before the Hon’ble Calcutta High on 27.11.2007 i.e., in AY 2008-09 but the case before the Hon’ble Court related to AY 2006-07. The Court was interpreting the term “assesseable” and countered the contention of the Assessee that prior to the amendment of Sec.50C of the Act w.e.f 1-10-2009, it is only cases where the valuation is completed in the relevant AY that provisions of Sec.50C of the Act can be applied. In the present case, no such devise to evade tax has been pleaded by the revenue nor a plea has been taken by the Assessee that sale having taken place earlier to the execution or registration of sale , provisions of Sec.50C of the Act are not applicable. As rightly contended by the learned Counsel for the assessee, it was a decision rendered on the scope of amendment to section 50C of the Act w.e.f. 01.10.2009. The decision referred to by the learned DR in the case of J.Appa Rao [2013 (11) TMI 1775 - ITAT HYDERABAD] is a case where it was held that applicability of the provisions of Sec.50C of the Act is mandatory w.e.f .1-4-2003. This decision does not in any way support the case of the revenue regarding the year in which capital gain is liable to be taxed. Capital gain in question cannot be brought to tax in Assessment Year 2011-12. The Revenue authorities erred in bringing to tax the capital gain in Assessment Year 2011-12. The addition made by the AO is accordingly directed to be deleted - Decided in favour of assessee.
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