9911796707
TMI Blog2013 (2) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... efore Section 50C was introduced to the Income Tax Act. After section 50C was introduced in the year 2003, the value of the land or building or both sold or otherwise transferred has to be the value assessed by the authority of the State Government for the purpose of stamp valuation. The submission that in the financial year 2005-06 when the consideration was received, the Deed of Conveyance had not even been executed has not found favour for the simple reason that the intention of the Parliament is that in a case where the land or building or both are sold or otherwise transferred, such transfer shall be deemed to have taken place only after the stamp duty has been assessed by the State Government, because it is on the valuation made f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, 2007. The assessee offered the sale proceeds for taxation during the financial year 2005-06 = Assessment Year 2006-07. Case of the assessee is that it had received money before executing the deed of conveyance. It would appear that the deed of conveyance was executed in the financial year 2006-07 and the registration took place in the financial year 2007-08. The question arose whether Section 50C of the Income Tax Act is applicable to the transaction. It shall be convenient to set out Section 50C, which prior to its amendment on 1st October, 2009, was as follows: Special provision for full value of consideration in certain cases. 50C.(1) Where the consideration received or accruing as a result of the transfer by an assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lready have indicated that the sale proceeds were claimed to have been received in the financial year 2005-06; the deed of conveyance was executed in the financial year 2006-07 and the registration of the deed of conveyance took place in the financial year 2007-08. The submission of the assessee was accepted by the CIT(A). The Revenue preferred an appeal. The learned Tribunal reversed the order of CIT(A). The assessee has once again come up before this Court. The following question of law has been advanced : Whether, on the facts and circumstances of the case, the learned Tribunal was justified in law in not considering that the words or assessable was introduced in section 50C(1) of the Income Tax Act, 1961 with effect from 1st Oc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Transfer , appearing from s.2(47)(v) of the I.T. Act, the sale was completed when the consideration was received in the financial year 2005-06. Possession had already been given in the year 1996 pursuant to an agreement for sale, as indicated earlier. Section 50C had no manner of application because the valuation of the land for the purpose of stamp duty was yet to be assessed. In the circumstances, the learned Tribunal erred in applying section 50C to the case of the assessee. We have not been impressed by this submission. It is true that Transfer has been defined in Section 2(47) quoted above. But the aforesaid definition was made before Section 50C was introduced to the Income Tax Act. After section 50C was introduced in the year 2003, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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