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TMI Blog2013 (11) TMI 816X X X X Extracts X X X X X X X X Extracts X X X X ..... se of ITO Vs. Kumudini Venugopal [2011 (4) TMI 940 - ITAT, CHENNAI] – Decided in favor of Assessee. Year of chargeability of capital gains - Held that:- If we go by the provisions of section 2(47) of transfer, as per the revised agreement, even the condition of transfer was not completed till the balance consideration was received even as per the revised agreement dated 07-01-2008, therefore, provisions of section 2(47) on deeming the transfer under the Transfer property Act, does not arise in AY 2007-08. - Since the amount is not taxable as such in AY 2007-08 and Assessee's counsel fairly admitted that Assessee is willing to get the same taxed in AY 2008-09 as the document was registered in that year, accordingly directed the AO to bri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Hyderabad for a consideration of Rs. 2,74,08,000/- ( two agreements of different amounts). Even through the agreement was entered on 31-03-2006, Assessee received substantial amount of Rs. 2,64,68,600/- in the FY 2006-07 relevant to AY 2007-08. However, these two agreements were not registered and Assessee has entered into fresh agreements dated 07-01-2008, which were registered on that day. The AO in the course of assessment proceedings invoked provisions of section 50C and re-determined sale price on the basis of the stamp Valuation of Registration Authorities. It was submission of Assessee that sale agreements were not registered and, therefore, provisions of section 50C are not applicable. It was further submitted that Assessee has en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the learned CIT(A), Assessee contended that provisions of section 50C are not applicable and further the capital gain itself is not taxable in AY 2007-08. The learned CIT(A) did not agree and confirmed the action of the AO, hence, the present appeal. 4. The learned counsel reiterated the facts and submitted that as per law the gain cannot be taxed in AY 2007-08 for the reason that if the date of agreement is considered, then, it will be assessable in AY 2006-07 as the agreement was entered on 31-03- 2006. For invoking provisions of section 2(47) there is no possession being handed over to party and those agreements were not even executed as they lapsed for non-registration within 4 months. Therefore, fresh agreements dated 07-01-2008 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le entered on 31-03-2006 were not registered. Once the documents were not registered, invocation of provisions of section 50C for adopting the same stamp value does not arise. This issue was already crystallized by various orders of ITAT wherein it was held that when sale agreement was not registered, provisions of section 50C of the Act, would not apply (ITO Vs. Kumudini Venugopal , 5 ITR (Trib.)145(Chennai). It is also admitted that provisions of the Act were amended with effect from 01-10- 2009 so as to consider the documents which are not registered by incorporating the word 'assessable'. Since the word 'assessable' was inserted with effect from 01-10-2009, it was held by various judicial authorities that provisions of section 50C canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar. the same need not be brought to tax in the year when Assessee subsequently revised the transaction and registered the letter document with the registration authorities, Assessee has given it in writing to the AO that the capital gain could be excluded in AY 2007-08 and to include the same in AY 2008-09. Moreover, Assessee is also agreeable for invoking the provisions of section 50C in AY 2008-09 as the document was registered in that year. In our view, the AO should have accepted the request of Assessee along with other adjustments made by way of revised return as can be seen from the order of the AO. Since the amount is not taxable as such in AY 2007-08 and Assessee's counsel fairly admitted that Assessee is willing to get the same tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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