9911796707
TMI Blog2023 (7) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... hough the assessee had received pay order before 15/12/2023, the assessee failed to estimate his income and pay tax thereon on the capital gain earned during the year as per section 209(1)(a) of the Income Tax Act, 1961. Rs. 30,11,069/- The case is covered under the exception clause (c) [Revenue Audit Objection Accepted by the Dept.] mentioned in para 10 of CBDT circular No.03/2018 2 The appellant prays that the order of the ld.CIT(A) be held to be bad in law and be quashed and that the order passed by the AO u/s. 154 of the Act be restored. Total tax effect Rs. 30,11,069/- 2. The relevant facts in this case are that the assessment proceedings in assessee's case for A.Y. 2014-15 were completed on 23/03/2021. Thereaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the sale transaction might have been finalized by the time pay order was purchased on 14/12/2013 by the buyer, legally no transfer had taken place till 19/12/2013. The clearing of the pay order on 16/12/2013 was only an advance payment and in the absence of a valid registration, it does not partake the character of sale consideration. Till the time, the sale is duly registered, the receipt of money by the assessee would continue to remain a liability and it does not partake the character of income accrued. Liability to pay advance tax can arise only on the accrual of income in the hands of the assessee and not prior to that. Therefore, on the facts of the case, income from sale of property has accrued to the assessee only on registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gets transferred from one party to another only through valid registration before the Registrar of Assurances. Till the time, the ownership is transferred whatever advance, party receives is a liability in his hand and it does not take the character of income accrued. We are in conformity with the findings of the ld. CIT(A) that such liability to pay advance tax arises only on the accrual of income in the hands of the assessee and not prior to that. When the pay order was purchased and it was cleared on 16/12/2013 such amount received was only a liability in the hands of the assessee and was not an income accrued. Therefore, there does not arise any liability to pay advance tax on or before 15/12/2013. Since, the sale registration was comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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