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TMI Blog2024 (11) TMI 1370X X X X Extracts X X X X X X X X Extracts X X X X ..... date of the registration deed and the amount of consideration or part thereto as per the said agreement has been paid by the purchaser though banking channel, then the stamp duty value/ circle date as mentioned on the date of agreement is to be taken for the purpose of Section 56(2)(x). Since, in this case the entire payment of ₹86 lacs was transferred by the assessee through banking channel on 30th December, 2016, therefore, AO is directed to calculate the amount as per the circle rate as applicable on 30th December, 2016. AO shall call upon for information in this regard from the circle officer/ collector and thereafter, apply the said rates for the purpose of computing the income of the assessee while invoking the provisions of Section 56(2)(x). - Shri Sanjay Garg, Judicial Member And Shri Sanjay Awasthi, Accountant Member For the Assessee : Shri Anup Sinha, AR For the Revenue : Shri P.P. Barman, Addl. CIT ORDER PER SANJAY GARG, JUDICIAL MEMBER: The present appeal has been preferred by the assessee against the order dated 2nd August, 2024 of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the ld. CIT(A) ) passed u/s 250 of the Income Tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty was also handed over by the assessee to the vendor on the same date. He, inviting our attention to the said unregistered agreement, stated that in fact the transfer of the property was complete on the date of execution of agreement itself, and that the registration of sale deed was rendered as a mere formality, which was done in the next year. He, in this respect has referred to the decision of the co-ordinate Bench of the Tribunal in the case of Income Tax Officer vs. Rekha Agarwal (Jabalpur) in I.T.A. No. 94/JAB/2018 dated 27th February, 2020 and further referring to the decision of the Hon'ble Supreme Court in the case of Sh. Sanjeev Lal Etc. Etc vs Commissioner Of Income Tax dated 1st July, 2014 (2014) 365 ITR 389 and further, decision of the Hon'ble Supreme Court in the case of CIT vs. Balbir Singh Maini and Ors. (2017) 398 ITR 531 (SC) , wherein para 21 22 of the said order, it has been held as under: - 21. However, the High Court has held that Section 2(47)(vi) will not apply for the reason that there was no change in membership of the society, as contemplated. We are afraid that we cannot agree with the High Court on this score. Under Section 2(47)(vi), any tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arty. WHEREAS the First party is the owner of Preeti Rice Mill, sim tuated in Arsha, District Purulia. And owing to certain legal necessity he intend to sell the said Rice Mill fully described in the Schedule below:- AND WHEREAS the Second Party hearing of the Offer have accepte the proposal of the First Party. AND NOW IT IS AGREED BETWEEN BOTH THE PARTIES THE SALE WILL BE CONDUCTED AS PER FOLLOWING TERMS CONDITIONS: 1. That the Second party shall pay sum of Rs. 86,00,000/- (Eighty Six lakhs) as full final payment for sale of Preeti Rice Mill along with factory plant machinery. 2. That, the Second party will have to pay the said amount within 30.12.2016. 3. That the First party will be bound to execute sale Deed within 2 years of receipt of the entire consideration money of Rs. 86,00,000/-. 4. That the First party on receive of the said amount will immediately deliver possession of the Factory premises to the Second party. 5. That, the Second party shall have right to take electric connection, Trade License, Govt. Permit and all other necessary licenses to run the Rice Mill and the First Party will not give any Objection against the Second party before any authority of law or Govt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was executed on 30th December, 2016 itself, and that the entire sale consideration was paid on the said date itself. However, as discussed above, on perusal of the clauses of the agreement would show that it was not a transfer deed in itself. Even in the light of the provision of Section 2(47)(vi) of the Act, in our view, the transfer was not complete on the said date as there is no mention in the agreement that the first party will enjoy the property on the execution of the agreement as owner and that the transferor from the said date will not have any right or interest left in the said property. Transfer was dependent upon future action of registration of sale deed. The copy of the registered sale deed has been placed at page 5 of the paper book which is dated 28th March, 2018. A perusal of the said sale deed would also reflect that the rights in the property have been transferred, on the date of execution of the sale deed. There is no mention in the sale deed that, in fact, the property was transferred on an earlier date, or that, the sale deed has been executed as formality on a subsequent date. All the rights in the said property were transferred as per the contents of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. Counsel for the assessee as an additional ground, however, we find force in the same in view of the provisions of Section 56(2)(X) read with First proviso and Second proviso. As per first and second Proviso to Section 56(2)(X) of the Act, where, the date of agreement, fixing the amount of consideration, is prior to the date of the registration deed and the amount of consideration or part thereto as per the said agreement has been paid by the purchaser though banking channel, then the stamp duty value/ circle date as mentioned on the date of agreement is to be taken for the purpose of Section 56(2)(x) of the Act. Since, in this case the entire payment of ₹86 lacs was transferred by the assessee through banking channel on 30th December, 2016, therefore, the ld. AO is directed to calculate the amount as per the circle rate as applicable on 30th December, 2016. The ld. AO shall call upon for information in this regard from the circle officer/ collector and thereafter, apply the said rates for the purpose of computing the income of the assessee while invoking the provisions of Section 56(2)(x) of the Act. 10. The appeal of the assessee stands partly allowed. Order pronoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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