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TMI Blog2017 (1) TMI 1675X X X X Extracts X X X X X X X X Extracts X X X X ..... convenience, now we take up the facts narrated in the appeal ITA No. 2385/Mds/2016. 2. The Revenue has filed an appeal against the order of CIT(A) in deleting the disallowance of Long Term Capital Gains for the assessment year 201011, where transfer took place in the financial year 2008-09, as per the unregistered sale agreement dated 23.07.2008. The Ld. CIT(A) erred in applying the provisions of section 2(47)(vi) of the Act r.w.s. 53A of the Transfer of property Act holding that the assessee has given possession to the purchaser, whereas the property was in possession of M/s. Voltas Ltd., on a long lease and over looked the judicial decisions, irrespective of the fact that, the transfer took place only on the date of registration of sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hands of assessee and adopted SRO value of property u/s. 50C of the Act and allowed the cost of acquisition value as on 01.04.1981 and made an addition of Long Term Capital Gain of Rs. 5,97,01,104/- and passed order u/s. 143(1) r.w.s 147 of the Act dated 17.03.2014. 4. Aggrieved by the AO's order, the assessee has filed an appeal with the CIT(A). Before CIT(A), the Ld. AR argued the grounds that the Assessing Officer erred in assessing the sum of Rs. 5,97,01,104/- as Long Term Capital Gains for the assessment year 2010-11 irrespective of transfer u/s. 2(47) and possession of capital asset in the previous year relevant assessment year 2009-10. Further, the Ld. AO erred in adopting FMV as on 01.04.1981 at Rs. 10.41/Sq.ft. and adopting p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... complete in all aspects. The assessee has given possession of property on 23.07.2008 in the financial year 2008-09 relevant to the assessment year 2009-10 and Ld. CIT(A) relied on the findings and judicial decisions observed at Page 14 Para 32 read as under: " In the light of the above discussion, it is found that the Assessing Officer has wrongly held that the capital gains is eligible in this case in assessment year 2010-11, but not in the assessment year 2009-10, when it was actually offered by the assessee in his Return of income. I may add here that the above view taken by me has also been upheld by CIT(A) in the case of other co-owners of the same piece of land. For example, in the case of N.S. Srinivasan, the Ld. CIT(A) -7, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,000/- per ground as on 01.04.1981. The Ld. CIT(A) has dealt on the provisions of section 50C(1) of the Act amended in the Financial Act, 2009 on 01.10.2009. Whereas, the sale agreement entered by assessee took place on 23.07.2008, which was made prior to the amendment of provisions and also no sale deed was executed on the said date and hence, the amended provisions are not applicable to assessee. The Ld. CIT(A) gave finding that the transfer has taken place on the basis of sale agreement on 23.07.2008 and the assessee complied the provisions of Income Tax and filed Return of income for the assessment year 2009-10 disclosing these facts, but the Ld. AO has adopted the Fair Market Value at Rs. 10..41 per sq.ft. which was not accepted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of section 50C and 2(47) of the Income Tax Act and sec. 53A of the Transfer of Property Act. We are conscious that there has since been amendment to sec. 50C(1) incorporating the word "or assessable", so that the value that would stand to be assessed would substitute the stated consideration. The said amendment, as held by the Hon'ble jurisdiction High Court in CIT Vs. R. Sugantha Ravindran (2013), 352 ITR 488 (mad) is effective only from 01.10.2009, i.e., subsequent to the transfer date in the present case. Hence, capital gains have to be assessed for the assessment year 2009-10 and there is no dispute on the compliance of requisite conditions for claiming exemption u/s. 54 and 54EC for the assessment year 2009-10. Considering the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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