9911796707
TMI Blog2013 (11) TMI 816X X X X Extracts X X X X X X X X Extracts X X X X ..... rtain to the issue of bringing to tax the capital gain arose out of the sale of land in the impugned assessment year and also invoking the provisions of section 50C of the IT Act. 2. Briefly stated, Assessee filed return of income admitting long term capital gains on sale of land at Rs. 1,98,70,495/-. The facts leading to this capital gain are that Assessee company entered into agreement of sale with M/s Heritage Infra Developers Ltd. on 31- 03-2006 for transfer of two pieces of valuable land situated at kondapur, Hyderabad for a consideration of Rs. 2,74,08,000/- ( two agreements of different amounts). Even through the agreement was entered on 31-03-2006, Assessee received substantial amount of Rs. 2,64,68,600/- in the FY 2006-07 relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is taxable in the year. Further, with respect to the issue of section 50C, the AO was of the opinion that amendment with effect from 01-10-2009 was clarificatory in nature and is applicable to all pending assessments. Accordingly, the difference of value as per the Stamp Value Authorities and the agreement value to an extent of 1,74,59,300 was brought to tax under the head 'long term capital gain along with admitted amount of Rs. 2,18,64,117/- (including difference admitted in the course of assessment). 3. Before the learned CIT(A), Assessee contended that provisions of section 50C are not applicable and further the capital gain itself is not taxable in AY 2007-08. The learned CIT(A) did not agree and confirmed the action of the AO, hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee itself has offered capital gains in AY 2007-08 and, therefore, there is no need to assess the same in AY 2008-09. He supported the orders of AO and CIT(A) on both the issues. 6. We have considered the issue and examined the contentions as well as various agreements placed on record along with other documents. It is true that Assessee has entered two agreements for sale of property on 31-03-2006. It is also true that consideration was received substantially in FY 2006-07. However, these two agreements of sale entered on 31-03-2006 were not registered. Once the documents were not registered, invocation of provisions of section 50C for adopting the same stamp value does not arise. This issue was already crystallized by various orders of IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as agreement was entered in 31-03-2006. If we go by the provisions of section 2(47) of transfer, as per the revised agreement, even the condition of transfer was not completed till the balance consideration was received even as per the revised agreement dated 07-01-2008, therefore, provisions of section 2(47) on deeming the transfer under the Transfer property Act, does not arise in AY 2007-08. By the time return was filed, Assessee has not entered into revised agreements and so offered capital gain in the year. the same need not be brought to tax in the year when Assessee subsequently revised the transaction and registered the letter document with the registration authorities, Assessee has given it in writing to the AO that the capital gai ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
