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TMI Blog2017 (1) TMI 1675X X X X Extracts X X X X X X X X Extracts X X X X ..... he Transfer of Property Act. We are conscious that there has since been amendment to sec. 50C(1) incorporating the word or assessable , so that the value that would stand to be assessed would substitute the stated consideration. The said amendment, as held in CIT Vs. R. Sugantha Ravindran [ 2013 (3) TMI 271 - MADRAS HIGH COURT] is effective only from 01.10.2009, i.e., subsequent to the transfer date in the present case. Hence, capital gains have to be assessed for the assessment year 2009-10 and there is no dispute on the compliance of requisite conditions for claiming exemption u/s. 54 and 54EC for the assessment year 2009-10. Thus assessee has complied the provisions of law and CIT(A) has considered these aspects Vis-a-vis the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2009. 3. The Brief facts of the case that the assessee filed Return of income for the assessment year 2010-11 disclosing total income of ₹ 14,32,470/- and the Assessing Officer issued notice u/s. 148 of the Act. In compliance to notice, the assessee filed a letter to treat the Return of income filed earlier and Ld. AR appeared from time to time and submitted the information. The assessee has undivided share in ancestral property along with 18 co-owners and property was leased out to M/s. Voltas Ltd., in the year 1975 for the period of 30 years. Subsequently, said property was sold by the legal heirs and spouses and children on Late P.N. Chettiar to PAO holder Shri S. Saravanan, though the sale deed was registered on 27.04.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... q.ft. and adopting provisions of section 50C of the Act. The vital issue being the assessee has complied to provision u/s. 53A of Transfer of Property Act and given possession of capital asset though sale deed was executed on 24.07.2009. The Ld. CIT(A) found that the assessee has claimed deduction u/s. 54F and 54EC of the Act in respect of Long Term Capital Gains and the sale agreement was entered on 23.07.2008 and the assessee received consideration to his share ₹ 3,07,55,540/- paid on the date of sale agreement and Balance consideration of ₹ 50 Lakhs was paid within a period of 10 days from the date of sale agreement. Whereas, Shri Saravan was in constructive possession of the property took charge of the lease property and als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .S. Srinivasan, the Ld. CIT(A) -7, vide his order in ITA No. 63/CIT(A)-7/14-15 for the assessment year 2010-11 dated 18.05.2015, has similarly held that Long Term Capital Gains would be assessed in assessment year 200910, based on the Memorandum of understanding entered into with Shri S. Saravanan dated 14.08.2008. I am given to understand that no further appeal has been filed by the Department against the said order of the CIT(A)-7. Similarly, in the case of Shri P. N. Manisundar, the same CIT(A)-7, Chennai vide his combined order in ITA Nos. 64, 65 80IA/CIT(A)-7/14-15 dated 18.05.2016 for the assessment year 200910, 2010-11 2012-13 has similarly held that the capital gains on sale of portion of the same property which is sold by the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et Value at ₹ 10..41 per sq.ft. which was not accepted by the assessee and the Ld. CIT(A) has confirmed the action of the Assessing Officer adopting FMV at ₹ 10.41 per sq.ft. Finally, the Ld. CIT(A) is of the opinion that the provisions of section 50C was not applicable, as transfer took place on 23.07.2008 prior to applicability of amended provisions u/s. 50C of the Act to the assessee being 01.10.2009 and partly allowed the appeal. 6. Aggrieved by the order of the CIT(A), Revenue has preferred an appeal. The Ld. DR reiterated the submissions where the Ld. CIT(A) has erred in deleting the addition of income from Long Term Capital Gains on the basis of the unregistered sale agreement dated 23.07.2008, whereas, the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r claiming exemption u/s. 54 and 54EC for the assessment year 2009-10. Considering the Apparent facts, material on record and judicial decisions. We are of the opinion that the assessee has complied the provisions of law and CIT(A) has considered these aspects Vis-a-vis the explanations of the assessee and findings of the Assessing Officer and deleted the addition . Accordingly, we are not inclined to interfere with the order of the CIT(A) and upheld the same and the Appeal of the Revenue is dismissed 8. The assessee had filed Cross Objections for the assessment year 2010-11. Since, the Revenue appeal is dismissed the Cross Objections become infructous and dismiss. 9. In the result, the Appeal of the Revenue and the Cros ..... X X X X Extracts X X X X X X X X Extracts X X X X
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