TMI Blog2023 (10) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... e in this case as it is a case of transfer of property through sale deed at a price lower than the value adopted for stamp duty valuation. Section 47(iii) comes to play only in cases of transfer through gift or will or an irrevocable trust. Transfer in the present case is not through these modes. The transaction has been held to be gift in the hands of the daughter, the transferee, and therefore it should be held so in the case of the assessee also is not tenable because in case of the daughter the consideration as per stamp duty valuation is not taxable as per proviso to section 56(2)(vii). However, the provisions of capital gains taxation and the income from other sources are independent of each other. The income in the hands of the daughter having been held to be exempt, does not absolve the assessee from the capital gain liability. Also decided in the case of Shri Jay Atulbhai Mody [ 2022 (12) TMI 1260 - ITAT RAJKOT] held that property transferred to Mother through Sale Deed is a sale and not Gift, taxable as capital gain. Decided against assessee. - BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER For the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer observed that the assessee had declared gross receipts of Rs. 1,02,000/-from sale of plots of land held jointly owned in the ratio of 1/6th held by the assessee. Accordingly, after deduction of indexed cost of Rs. 1.14 lakhs, net Short-Term Capital Loss was declared by the assessee at Rs. 12,206/-. From verification of submissions of the assessee, the Assessing Officer observed that the sale deed of these plot was registered on 29.09.2012 with registrar of property for a total consideration of Rs. 51,000/-. However, Stamp Duty valuation was much more and accordingly, the Assessing Officer issued a show cause notice for making addition of Rs. 30,53,684/- to the income of the assessee owing to difference of value under Section 50C of the Act. During the course of assessment, the assessee submitted that the assessee along with other joint holders have transferred the land to their daughter-in-law on 20th September, 2012, but by mistake the amount was mentioned at Rs. 51,000/- for administrative and Stamp Duty purposes. However, the said land was transferred by the assessee to his daughter-in-law without any consideration whatsoever. Therefore, to rectify the mistake, new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances of the case, the addition made by the AO is appropriate, as per provisions of the Income tax Act, 1961 and the same is confirmed. The grounds of appeal of the appellant are considered and dismissed. 5. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(A) confirming the additions made by the Assessing Officer by invoking the provisions of Section 50C of the Act. The Counsel for the assessee submitted that in the instant facts, the land had been transferred by the assessee, along with other joint holders to his daughter-in-law. This fact has not been disputed by the Department at any stage the hearing. If, in the instant facts, the land had been transferred by way of gift deed , there could have not have been any charge of tax on such transfer, since the transferee was a close relative of the assessee, as defined under the Act. Further, the amount which was mentioned in the sale deed, was only towards administrative purposes and stamp duty charges. The intention from the very start was to only gift the above property by the assessee to his daughter-in-law. Therefore, this mistake was also rectified subsequently when a fresh gift deed was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order passed by AO is not speaking while rejecting the contentions of the assessee. The assessee has placed reliance on the cases of Rashtriya Ispat Nigam Limited vs. Diwan Chand Ram Saran (2012) 4 SCR 1 and Addl. CIT vs. Mrs. Avtar Mohan Singh (1982) 136 ITR 645 (Del). It is also contended that the said transaction has been treated as a gift in hands of the assessee s daughters Ms. Milanjeet Kaur. It is also contended that this transaction was a gift and therefore by virtue of section 47(iii), it was no liable for capital gain taxation. I find that the transaction is clearly through sale deed 15 This fact is not controverted. The submission that it was a gift is not borne out from the deed of transfer. In the deed, consideration has been shown to have been received. The mode of receipt of consideration not mentioned. Since the consideration has not received through cheque, there is no question of it being reflected in the bank account of the daughter. It is also true that for the purpose of stamp duty valuation, the property has been valued in Rs. 35,11,704/-. The provisions of section 50C are clearly applicable in this case as it is a case of transfer of property through sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e gift or without consideration. Accordingly, we hold that there was a valid transfer of the property in the given facts and circumstances within the meaning of the provisions of section 45 of the Act. In holding so we draw support and guidance from the judgment of Hon'ble Punjab and Haryana High Court in case of Paramjit Singh vs. ITO reported in 195 Taxman 273 wherein it was held as under: 4. We have thoughtfully considered the submissions made by the learned counsel and are of the view that they do not warrant acceptance. There is well-known principle that no oral evidence is admissible once the document contains all the terms and conditions. Sections 91 and 92 of the Indian Evidence Act, 1872 (for brevity 'the 1872 Act') incorporate the aforesaid principle. According to section 91 of the Act when terms of a contracts, grants or other dispositions of property has been reduced to the form of a documents then no evidence is permissible to be given in proof of any such terms of such grant or disposition of the property except the document itself or the secondary evidence thereof. According to section 92 of the 1872 Act once the document is tendered in evidence an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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