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TMI Blog2015 (10) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... tween the parties and part consideration is received, the transfer for the purpose of Section 50C of the Act takes places and computation under Section 48 of the Act will start accordingly, for the purpose of calculating the capital gains under Section 45 of the Act. From the aforesaid, it is apparently clear that the transfer of the property took place in the year 2001 when the provision of Section 50C of the Act was not in existence. Consequently, the Assessing Officer was not justified in making the reassessment and computing the capital gains by invoking the provision of Section 50C of the Act, which was clearly not applicable in the assessees' case. - Decided in favour of assessee. - Income Tax Appeal No. 373 of 2010, 365 of 2010, 376 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the return, the assessees showed the income received from salary, income from other sources and long term capital gains. Subsequently, the assessees received a notice under Section 148 of the Act to show cause as to why the assessment should not be reopened and why capital gains should not be assessed as per provisions of Section 50C of the Act. The Assessing Officer reopened the proceedings and reassessed the income computing the long term capital gains on the basis of Section 50C of the Act taking the value assessed by the local authority. 3. The assessees, being aggrieved, filed separate appeals, which were allowed by the Ist appellate authority holding that capital gains was not taxable for the assessment year under appeal and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , being land or building or both, is less than the value adopted or assessed [or assessable] by any authority of a State Government (hereafter in this section referred to as the stamp valuation authority ) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed [or assessable] shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. (2) Without prejudice to the provisions of sub-section (1), where-- (a) the assessee claims before any Assessing Officer that the value adopted or assessed [or assessable] by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (2) exceeds the value adopted or assessed [or assessable] by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed [or assessable] by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer. 7. The said provision contemplates that where the consideration received or accrued as a result of transfer of land is less than the value adopted or assessed by any authority of the State for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed is, for the purpose of Section 48 of the Act be taken to be the full value of the consideration received or accrued as a result of such transfer. 8. The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital gains and shall be deemed to be the income of the previous year in which the transfer takes place. When would the transfer takes place has not been specified under Section 45 of the Act or under Section 50C of the Act for the purpose of computing the income chargeable under the head capital gains under Section 48 of the Act. According to the Assessing Officer, the transfer took place in April, 2003 when the sale deed was executed. According to the Ist Appellate Authority, the transfer takes place when the agreement of sale was executed on 04.07.2001. 11. Transfer has been defined under Section 2(47) of the Act, which is extracted hereunder : transfer , in relation to a capital asset, includes,-- (i) the sale, exchange or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether 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; 12. Sub-clause (ii) of Section 2(47) of the Act states that the transfer, in relation to a capital asset, includes the extinguishment of any rights therein. In Sanjeev Lal and another Vs. Commissiioner of Income-Tax And Another, (2014) 365 ITR 389(SC), the Supreme Court considered the question as to whether the date on which the agreement for sale was executed could be considered the date on which the property was transferred. The Supreme Court held that when an agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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