HC determined that the transfer of a rice mill occurred upon ...

Sale of Rice Mill Deemed Complete on Agreement Date, Transfer Tax Triggered by Possession and Full Consideration Paid

April 24, 2025

Case Laws     Income Tax     HC

HC determined that the transfer of a rice mill occurred upon execution of the sale agreement on 13.12.2016, not the registered sale deed on 21.3.2018. Relying on SC precedent in a similar case, the court held that the transaction enabling enjoyment of immovable property constitutes a transfer under section 2(47)(vi). The tribunal's initial conclusion was incorrect, as the entire sale consideration was paid at agreement execution, and the assessee was put in possession of the property. Consequently, the HC allowed the appeal, set aside the tribunal's order, and answered substantial legal questions in favor of the assessee.

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