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TMI Blog2023 (8) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... deed and such rights are protected under Order XXXVIII Rule 10 CPC read together with Section 47 of the Registration Act. The sale-deed even if finally registered on 19.05.2011 would relate back to 22.03.2011 (i.e. date of execution). Being so, we agree to the contention of Ld. AR that the sale of land had taken place on 22.03.2011 in the financial year 2010-11 and the capital gain was taxable in AY 2011-12. The necessary outcome of this is such that the AO has wrongly assessed the capital gain in AY 2012-13 under consideration. Faced with this situation, we are inclined to delete the addition made by AO in AY 2012-13. The assessee succeeds in this claim. - Shri Vijay Pal Rao, Judicial Member And Shri B.M. Biyani, Accountant Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see carried matter in first appeal and explained the facts as also filed documentary evidences to CIT(A). It was submitted that the sale consideration of Rs. 20,00,000/- was received by assessee and three joint owners through 4 cheques, each of Rs. 5,00,000/- and each dated 24.02.2011 as mentioned in the sale-deed, and the assessee s cheque of Rs. 5,00,000/- was cleared and credited in his Bank A/c on 28.02.2011. It was further submitted that the possession was handed over to buyers on 22.03.2011 and that the sale-deed was also executed as well as presented to the office of sub-registrar on 22.03.2011; therefore the transaction of sale had taken place during the financial year 2010-11 relevant to AY 2011-12. Hence the capital gain was taxab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -deed, the Ld. AR demonstrated that the assessee has given possession to buyer on the very same date i.e. 22.03.2011. Further referring to condition no. 2 of the sale-deed, Ld. AR demonstrated that the sellers including assessee had received full consideration from buyer through cheques dated 24.02.2011 drawn on Bank and the assessee s own cheque of Rs. 5,00,000/- was also cleared and credited in assessee s bank a/c on 28.02.2011 as is evident from copy of bank pass book placed at page no. 51 of Paper-Book. This way, Ld. AR successfully demonstrated that the assessee has made sale of the impugned land on 22.03.2011 itself falling within the previous year 2010-11 relevant to AY 2011-12. Therefore, the impugned capital gain was taxable in AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11-12 relevant to AY 2012-13. 8. We have considered rival submissions of both sides and also perused the documents filed before us in paper book. We find that it is not a case of unregistered sale of land. In fact, the sale is done through a registered sale-deed executed between parties. But the controversy has cropped because of the reason that though the sale-deed was executed on 22.03.2011 and presented to the Office of Sub-Registrar also on 22.03.2011, which is an undisputed fact duly acknowledged by seal and signature of Sub-Registrar, but the registration was finally done/cleared on 19.05.2011 after payment of some duty/fee by buyer. In this situation, firstly there seems to be no fault of assessee when the assessee has done everyt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onths has been provided for presenting the sale deed for registration from the date of its execution. In case of dispute regarding the execution of the document an enquiry is permitted under Section 74(a) of the Registration Act and that may also take some time. The legislature being alive to such situations has already provided in Section 47 of the Registration Act that it shall operate from the time from which it would commence to operate if no registration thereof had been required or made and not from the time of its registration. Thus in our view the vendee gets rights which will be related back on registration from the date of the execution of the sale deed and such rights are protected under Order XXXVIII Rule 10 CPC read together wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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