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TMI Blog2018 (5) TMI 1253X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee’s Counsel has also placed reliance upon Circular no.5/2010 issued by the CBDT wherein it has been clearly mentioned that “these amendments have been made applicable w.e.f. 1st October 2009 and will accordingly apply for transaction undertaken on/or after such date”. Hence, from the above provisions of law and CBDT circular, it is clear that transfer of immovable property without consideration will be taxable in the hands of transferee if the transaction took place after 1st October 2009. There was no provision of law to tax such transaction prior to 1st October 2009. The impugned transaction was entered into on 6th June 2009, as per registered sale deed. Hence, there is no dispute that the impugned transaction is not hit by the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... immovable property by the assessee for a consideration of Rs. 48,57,000. The Assessing Officer required the assessee to furnish details of the said transaction and also made enquiry with the office of Sub Registrar office, Kuhi, Nagpur, and obtained the Sale Deed in respect of the said transaction. On a perusal of the said Sale Deed the Assessing Officer noticed that the assessee has purchased one plot of land at Mouza Pipri, Tah. Kuhi, Nagpur, from M/s.Infratech Real Estate Pvt. Ltd. for the consideration of Rs. 48,57,000 on 6th June 2009. He also noted that it was mentioned in the said registered sale deed that the assessee had paid the consideration of Rs. 48,57,000 by way of cheque no.573883 issued by Canara Bank, Badkas Chowk, Nagpur, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t convinced and upheld the order of the Assessing Officer by observing as under:- "5. I have carefully considered the facts of the case and the submissions of the appellant. As per Section 2(47) of the I T Act, transfer in relation to capital asset includes sale of property. On the basis of material collected by the learned A.O., it is quite evident that in this case the registered sale deed was entered into by the appellant with M/s. Infratech Real Estate Pvt Ltd on 06/06/2009 by virtue of which the said plot of land stood transferred from M/s Infratech Real Estate Pvt Ltd to the name of the appellant. Thus it is clear that the appellant has become the owner and has received the said plot of land from M/s Infratech Real Estate Pvt Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Infratech Real Estate Pvt. Ltd on 06/06/2009 for consideration of ₹ 48,57,000/-. The details of consideration paid is also observed being Cheque No.573883 of Canara Bank, Nagpur. A.O. has noted that assessee is working director of the said company and the aforesaid transaction is not shown in return of income. It is also noted by A.O. that Canara Bank A/c Cheque No.573883 given by assessee was not presented for clearing. B) A.O. on verification of audited balance sheet of M/s Infratech Real Estate Pvt. Ltd. has observed that neither the transaction of sale of land is reflected in sale of land during the year nor receivable from assessee was shown as on 31/03/2010. A.O. has thus concluded that the said property is transferred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase of land by assessee as in the company said land is shown as its stock in Trade in WIP in balance sheet." 5. Per-contra, the learned Departmental Representative relied upon the order of the authorities below. 6. We have heard the rival contentions and perused the material available on record. At the outset, we note that the addition in this case has been made under section 56(2)(vii)(b) of the Act. Provisions of section 56(2)(vii)(b) of the Act bring into the ambit of income from other sources, of an immovable property to the transferee, which is received without consideration. This was brought into statute book by Finance Act, 2010, w.e.f. 1st October 2009. Hence, prior to this date such transactions were not coming under income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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