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TMI Blog2025 (4) TMI 1270X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 2018-19. The assessee has raised the following substantial questions of law for consideration. "a. Whether Ld. ITAT erred in law in not appreciating that addition under the provision of section 56 (2) (x) of the Act cannot be made for the previous year relevant to assessment year 2018-19 as the purchase/sale/transfer of the said rice mill took place in the previous year relevant to the assessment year 2017-18 and not in the assessment year 2018-19 ? b. Whether Ld. ITAT erred in law in not appreciating that the de-facto transfer of immovable property in terms of section 2 (47) (ii) read with and 2 (47) (vi) of the Act took place on the date of 'AGREEMENT FOR SALE' (i.e. December 30, 2016), as the total sale consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent. 3. The short issue which falls for consideration is whether the assessee was right in contending that they purchased the assets in question namely, a rice mill should be taken to be on the date when they entered into the agreement for sale of the property which was made on 13.12.2016 or when the registered sale deed was executed and registered on 21.3.2018. 4. The facts which are not in dispute are that the assessee entered into an agreement for sale with the vendor for sale of a rice mill situated in the district of Purulia. The relevant terms and conditions of the agreement for sale has been noted by the tribunal and extracted in the impugned order from which it is seen that the assessee which was described as a second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2014) 365 ITR 389 (SC) considered this issue and the question which fell for consideration before the Hon'ble Supreme Court was whether the entire property (therein) can be said to have been sold at the time when an agreement to sell is entered into. The Hon'ble Supreme Court pointed out that in normal circumstances the afore-stated question has to be answered in the negative. However, looking into the provision of section 2 (47) of the Act which defines the word 'transfer' in relation to a capital asset, one can say that if a right in the property is extinguished by execution of an agreement to sell, the capital asset can be deemed to have been transferred. After noting the definition of transfer as defined under section 2 (47) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f transferring or enabling the enjoyment of any immovable property should come within its purview. Therefore, the legal issue is well settled and the view taken by the tribunal that on execution of the agreement for sale no right accrues in favour of the assessee does not lay down on the correct legal principle. That apart, the sale transaction was assessed to tax for the assessment year 2017-18 and the said assessment was subject matter of reopening under section 147 of the Act and the re5 assessment was completed. In fact, the learned tribunal while considering the second issue as to the applicable circle rate of the property has held in favour of the assessee by taking note of the fact that the entire sale consideration has been paid at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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