TMI Blog2013 (3) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... does not include transaction which are not registered with stamp duty valuation authority and executed through agreement to sell or power of attorney is only prospective in nature and cannot be applied retrospectively, failure to understand as to how the Revenue can canvass the same issue in this case which in effect is against the circular issued by the Board. The Revenue is bound by the circular issued by the Board. See State of Tamil Nadu and another Vs. India Cements Ltd. and another reported in (2011 (4) TMI 1080 - SUPREME COURT OF INDIA) wherein held that the circulars issued by the Revenue are binding on the Department and therefore, they cannot repudiate that they are inconsistent with the statutory provisions. Thus the inse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case where the sale of the property has not been registered, even though the assessing officer computed the long term capital gains, adopting the guideline value as the sale consideration, instead of the consideration admitted by the assessee?" 2. The assessee is an individual and filed her return of income for the assessment year 2005-2006 returning the total income of Rs.98,886/-. The assessee along with the two co-owners transferred a property measuring 23.84 cents in pursuance of an agreement of sale for consideration of Rs.50 lakhs to a third party. The agreement was not a registered one. Pursuant to the sale agreement, the physical possession of the property was handed over to the buyer and the assessee also received the sale c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he word "assessable" introduced by way of Finance (No.2) Act, 2009, though with effect from 01.10.2009, has to be treated as applicable even in the case of assessee as the intention of the legislation is to bring all the transactions where the registration of sale has not taken place also. 4. Per contra, learned counsel for the assessee submitted that when the word "assessable" was inserted by the Finance (No.2) Act, 2009, that too, with effect from 01.10.2009, cannot be applied retrospectively and therefore, Section 50C can be made applicable only in the case where the registration of the sale deed had taken place and not otherwise. 5. Heard the learned counsel on either side. 6. The issue involved in this case is as to whether the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been made applicable with effect from 1st October, 2009 and will accordingly, apply in relation to transactions undertaken on or after such date." 9. Learned counsel for the Revenue is not disputing about the existence of such circular issued by the Board. If the Board has issued a circular clarifying the applicability of Section 50C in pursuance of the amendment made by Amendment Act 2 of 2009, we fail to understand as to how the Revenue can canvass the same issue in this case which in effect is against the circular issued by the Board. Certainly, the Revenue is bound by the circular issued by the Board. At this juncture, it is pertinent to note that in a decision made in the case of State of Tamil Nadu and another Vs. India Cements ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further held that the Department is precluded from the right to file an appeal against the correctness of the binding nature of the circulars and the Department's action has to be consistent with the circular which is in force at the relevant point of time." 10. Even otherwise, we are of the firm view that the insertion of words "or assessable" by amending Section 50C with effect from 01.10.2009 is neither a clarification nor an explanation to the already existing provision and it is only an inclusion of new class of transactions namely the transfers of properties without or before registration. Before introducing the said amendment, only the transfers of properties where the value adopted or assessed by the stamp valuation authority were ..... X X X X Extracts X X X X X X X X Extracts X X X X
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