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2018 (5) TMI 1253 - AT - Income TaxAddition under the head income from other sources - transfer of immovable property without consideration - Held that:- Provisions of section 56(2)(vii)(b) of the Act bring into the ambit of income from other sources, of an immovable property to the transferee, which is received without consideration. This was brought into statute book by Finance Act, 2010, w.e.f. 1st October 2009. The above said provisions of the Act are applicable to transactions which are entered into after 1st October 2009. In this regard, assessee’s Counsel has also placed reliance upon Circular no.5/2010 issued by the CBDT wherein it has been clearly mentioned that “these amendments have been made applicable w.e.f. 1st October 2009 and will accordingly apply for transaction undertaken on/or after such date”. Hence, from the above provisions of law and CBDT circular, it is clear that transfer of immovable property without consideration will be taxable in the hands of transferee if the transaction took place after 1st October 2009. There was no provision of law to tax such transaction prior to 1st October 2009. The impugned transaction was entered into on 6th June 2009, as per registered sale deed. Hence, there is no dispute that the impugned transaction is not hit by the provisions of section 52(6)(vii)(b) of the Act.- Decided in favour of assessee.
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