TMI Blog2023 (7) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... 9/12/2013. That, as per the provisions of Transfer of Property Act, 1882, the ownership of an immovable property gets transferred from one party to another only through valid registration before the Registrar of Assurances. Till the time, the ownership is transferred whatever advance, party receives is a liability in his hand and it does not take the character of income accrued. We are in conformity with the findings of the ld. CIT(A) that such liability to pay advance tax arises only on the accrual of income in the hands of the assessee and not prior to that. When the pay order was purchased and it was cleared on 16/12/2013 such amount received was only a liability in the hands of the assessee and was not an income accrued . Thus no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant prays that the order of the ld.CIT(A) be held to be bad in law and be quashed and that the order passed by the AO u/s. 154 of the Act be restored. Total tax effect Rs. 30,11,069/- 2. The relevant facts in this case are that the assessment proceedings in assessee s case for A.Y. 2014-15 were completed on 23/03/2021. Thereafter, the AO had issued notice u/sec. 154 of the Act on 07/03/2021 proposing to levy interest u/sec. 234C of the Act on the ground that assessee had failed to pay advance tax instalment by 15/12/2013 on the capital gains arising on the sale of property carried out as per agreement dated 19/12/2013. The AO held that though the agree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration. Till the time, the sale is duly registered, the receipt of money by the assessee would continue to remain a liability and it does not partake the character of income accrued. Liability to pay advance tax can arise only on the accrual of income in the hands of the assessee and not prior to that. Therefore, on the facts of the case, income from sale of property has accrued to the assessee only on registration of the sale agreement on 19/12/2013 and the liability to pay advance tax instalment on or before 15/12/2013 did not arise. Accordingly, the ld. CIT(A) held that the liability to pay advance tax on the sale transaction had arisen only on 19/12/2013 and, hence, there was no liability to pay any advance tax instalment on or be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that such liability to pay advance tax arises only on the accrual of income in the hands of the assessee and not prior to that. When the pay order was purchased and it was cleared on 16/12/2013 such amount received was only a liability in the hands of the assessee and was not an income accrued. Therefore, there does not arise any liability to pay advance tax on or before 15/12/2013. Since, the sale registration was completed on 19/12/2013, the liability to pay advance tax on the sale transaction can only be said to have arisen on 19/12/2013. Therefore, we do not find any infirmity with the findings of the ld. CIT(A), which is upheld. The grounds of appeal of the Revenue are dismissed. 5. In the result, appeal of the Revenue is dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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