TMI Blog2024 (1) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, even in case of no consideration is received by the assessee under a mode of transfer, the full value consideration has to be taken into consideration as per the provisions of Section 50C of the Income-tax Act, 1961. Hence, a purchase has an inevitable transaction of sale by the other party to the transaction and therefore, is part of the transfer, then purchase of an immovable property cannot be without a valid title document as held in the case of CIT vs. Balbir Singh Maini [ 2017 (10) TMI 323 - SUPREME COURT] . The decisions relied upon by assessee are prior to the judgment of the Hon'ble Supreme Court in the case of Balbir Singh Maini(supra) and, therefore, those decisions cannot be applied by ignoring the judgment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the issue that the transaction of sale of land on which capital gain was offered was cancelled. When the sale of land is not there, the question of any capital gain does not arise. 2. WITHOUT PREJUDICE TO THE ABOVE: That the Ld. CIT(A) erred in maintaining disallowance of Rs. 22,03,000/- by denying deduction u/s 54B on agricultural land purchased through agreement. The disallowance so sustained being illegal and wrong, the same may very kindly deleted. 2. The assessee is an individual and filed return of income on 31 st March, 2016, declaring total income of Rs. 1,90,050/-. The case of the assessee was selected for scrutiny through CASS. During the assessment proceedings, the AO noted that the assessee has claimed de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the registration is required only in case of transfer of immovable property/capital assets and, therefore, the judgment of Hon'ble Supreme Court in the case of CIT vs. Balbir Singh Maini, 398 ITR 532, is not applicable when the assessee has paid purchase consideration of agricultural land. He has further submitted that Section 54-B used the terms purchase and not transfer and, therefore, the conditions of registration applicable for transfer is not relevant for purchase of agricultural land. He has relied upon the following decisions:- (i) Dy. CIT Anr. V. Assa Sngh Anr., 46 CCH 0287 (Amritsar Trib) (ii) Ramesh Narhari Jakhadi v. ITO, 11 CCH 0081 (Pune Trib) (iii) Anil Bishnoi vs. ACIT, I.T.A.No.1459/Chd/2016 (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Limited, 340 ITR 1, and submitted that an immovable property can be legally and lawfully transferred/conveyed only by way of registered deed of conveyance. He has relied upon the orders of the authorities below. 6. We have heard the rival submissions as well as material placed on record. The first contention raised by the Ld. Authorized Representative of the assessee is that no registration of title document is required for claiming deduction u/s 54-B as the assessee has purchased the land vide un-registered agreement and making the payment in cash and taking the possession of the agricultural land. Section 54-B(1) uses the term transfer for the transaction resulting capital gains and the exemption of the said capital gain is provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty shall have the same meaning as in clause (d) of section 269 UA.] [Explanation 2 For the removal of doubts, it is hereby clarified that transfer includes and shall be deemed to have always included disposing of or parting with an asset or any interest therein, or creating any interest in any asset in any manner whatsoever, directly or indirectly, absolutely or conditionally, voluntarily or involuntarily, by way of an agreement (whether entered into in India or outside India) or otherwise, notwithstanding that such transfer of rights has been characterised as being effected or dependent upon or flowing from the transfer of a share or shares of a company registered or incorporated outside India;] 7. Thus, the transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entative of the assessee that for claiming the benefit of section 54-B, the registration of the title deed is not required. 8. As regards the validity of the transaction of exchange of land between the assessee and one Mr. Suresh Verma, the assessee has now filed an affidavit as under:- 9. The assessee has also filed the copies of legal notices dated 05.03.2020 and 27.01.2023, wherein the transaction has been challenged as illegal being The Government land which was transferred by the assessee under the said exchange. Accordingly, in the facts and circumstances of the case, we set-aside the matter to the record of the AO for proper verification and deciding the same after considering the new development in respect of the lan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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