9911796707
TMI Blog2024 (8) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... ings recorded by the ld AO with regard to capital gains in the scrutiny assessment proceedings for AY 2007 08. In our considered opinion, mere execution of the sale deed dated 20.09.2010, which was effectively a registration deed on account of certain objections raised by the local authorities could not fasten any capital gains tax liability on the assessee for AY 2011-12 when the capital gains for the very same property had already offered by the assessee and assessed by the ld AO in scrutiny assessment proceedings in AY 2007-08. This view of ours is further fortified by the decision of case of Poddar Cements [ 1997 (5) TMI 2 - SUPREME COURT ] Hence, there cannot be any application of provisions of section 50C of the Act for the subject me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not applicable as the transaction in question has not occurred during the AY 2011-12. 2. Without prejudice to the aforesaid ground, the both Ld. CIT(A) and Ld. AO based on same set of facts, has erred in applying provisions of section 50C/43CA to enhance the sale consideration of the Immovable Assets at Rs 93,50,000/-by adopting the value on the date of registration of sale deed and erred in not taking the year of sale consideration received and possession given. The addition made of Rs 69,50,400/- is bad in law and is required to be deleted. 3. For the year under consideration, the both Ld. CIT(A) and Ld. AO has erred in holding that capital gain is required to be determined in the year of registry of sale deed and not in the year in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment was completed vide order dated 19.03.2015 passed u/s 143(3) of the Act assessing total income at Rs.296,28,03,260/- after making certain disallowances/additions. This assessment was sought to be reopened by the ld AO vide issuance of notice u/s 148 of the Act on 31.03.2018 for the AY 2011-12. The assessee vide letter dated 16.04.2018 and 10.07.2018 submitted that the original return filed by the assessee may be treated as a return filed in response to notice u/s 148 of the Act. The assessee sought for furnishing of reasons recorded for reopening the assessment from the ld AO, which were duly furnished by the ld AO. In the reasons recorded, it is stated that certain information was purportedly received from DDIT (I CI), Ranchi vide let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d possession of the properties were handed over by the assessee to the buyer in July 2006. (iii) The gain arising on sale of aforementioned properties were duly reflected in the audited financial statements of the assessee company as on 31.03.2007. (iv) Return of income for AY 2007 08 declaring capital gains arising in respect of aforementioned transaction was filed on 26.10.2007. (v) Sale deed was executed clearly mentioning the agreed consideration of ₹4,26,99,600/- in respect of factory premises and Directors bungalow on 13.11.2007. (vi) The sale deed was presented for registration on 03.11.2008. However, the Sub-Registrar refused the registration and in this regard, the Hon ble High Court of Jharkhand has passed an order on 12.03. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is so, for the very same property, how can there be capital gains in AY 2011- 12. Admittedly, there was no reopening made for AY 2007 08 or revision proceeding made u/s 263 of the Act for AY 2007-08 disturbing the findings recorded by the ld AO with regard to capital gains in the scrutiny assessment proceedings for AY 2007 08 vide order dated 14.02.2011. In our considered opinion, mere execution of the sale deed dated 20.09.2010, which was effectively a registration deed on account of certain objections raised by the local authorities could not fasten any capital gains tax liability on the assessee for AY 2011-12 when the capital gains for the very same property had already offered by the assessee and assessed by the ld AO in scrutiny ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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