TMI Blog2019 (12) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 03.06.2010, has also clearly explained that the provisions of Section 50C of the Act will come into effect from 1st October, 2009 and it is further clarified that the provisions of Section 50C have no application in respect of transaction which are not registered with the registration authorities. The Hon ble Jurisdictional High Court in the case of CIT vs. R. Sugantha Ravindran [ 2013 (3) TMI 271 - MADRAS HIGH COURT] held after introduction of the words or assessable after the words adopted or assessed , such transfers where the value assessable by the stamp valuation authority are also brought into the ambit of section 50C. Thus, such introduction of new set of class of transfer would certainly have the prospective applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction as a transfer under section 2(47) of the Act and offered the income there on under the head Capital Gains for AY 2008-09. 4. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the Ld. CIT(A) be set aside and that of the AO restored . 3. The brief facts of the case are as under: The Respondent assessee namely M/s. Biomed Hitech Industries Ltd is a company incorporated under the provisions of the Companies Act, 1956. It is engaged in the business of manufacturing medical consumable. The return of income for the AY 2008-09 was filed on 30.09.2008 admitting Nil income after set off of brought forward losses of A9,37,41,619/-. The said return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... include transactions which are not registered with the registration authorities. 5. Being aggrieved, the Revenue is in appeal before us in the present appeal. 6. We heard the rival submissions and perused the material on record. The only issue in the present appeal relates to whether or not the provisions of Section 50C of the Act can be invoked even prior to 1st October, 2009, in respect of transaction which took place prior to 1st October, 2009. Admittedly, in the present case, the relevant material which are required to be noted are that the assessee had entered into unregistered agreement for sale with M/s. Vishranthi Sabari Construction on 23.06.2006 for sale of 200 cents of land situated in Survey No.475, Sholingan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e circular. It is stated therein that the scope of the provisions does not include transaction which are not registered with stamp duty valuation authority and executed through agreement to sell or power of attorney. Consequently, it is made clear therein that the amendments have been made applicable with effect from October 1, 2009, and, therefore, they will apply only in relation to transaction undertaken on or after such date. The relevant portion of the circular is extracted hereunder (page 319 of 324 ITR) : 23.4. Applicability.-These amendments have 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atutory provisions or it mitigates the rigour of the law. 22. In Paper Products Ltd. v. CCE [2001] 247 ITR 128 (SC) ; [1999] 7 SCC 84), while interpreting section 37B of the Central Excise Act, 1944, which is in pari materia with section 28A of the TNGST Act, this court had held that the circulars issued by the Central Board of Excise and Customs are binding on the Department and the Department is pre cluded from challenging the correctness of the said circulars, even on the ground of the same being inconsistent with the statutory provision. It was 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
