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2023 (10) TMI 1134 - AT - Income TaxLTCG invoking the provisions of Section 50C - property transferred through Sale Deed - as argued land was transferred by the assessee to his daughter-in-law without any consideration whatsoever - Whether case of family arrangement not liable to capital gain? - as submitted that the gift given to relative is not considered as a “transfer” as per Section 47(iii) and said transfer is not taxable in the hands of the daughter-in-law in view of the provisions of Section 56(2)(vii) - HELD THAT:- We observe that this issue has been directly dealt with in the case of Smt. Balwant Kaur Mangat [2017 (8) TMI 1129 - ITAT DELHI] as held transaction is clearly through sale deed and submission that it was a gift is not borne out from the deed of transfer - mode of receipt of consideration not mentioned. Since the consideration has not received through cheque, there is no question of it being reflected in the bank account of the daughter. The provisions of section 50C are clearly applicable in this case as it is a case of transfer of property through sale deed at a price lower than the value adopted for stamp duty valuation. Section 47(iii) comes to play only in cases of transfer through gift or will or an irrevocable trust. Transfer in the present case is not through these modes. The transaction has been held to be gift in the hands of the daughter, the transferee, and therefore it should be held so in the case of the assessee also is not tenable because in case of the daughter the consideration as per stamp duty valuation is not taxable as per proviso to section 56(2)(vii). However, the provisions of capital gains taxation and the income from other sources are independent of each other. The income in the hands of the daughter having been held to be exempt, does not absolve the assessee from the capital gain liability. Also decided in the case of Shri Jay Atulbhai Mody [2022 (12) TMI 1260 - ITAT RAJKOT] held that property transferred to Mother through Sale Deed is a sale and not Gift, taxable as capital gain. Decided against assessee.
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