Transfer date under capital gains law may precede registration where possession passes under part performance, affecting section 50C valuation.

The transfer date for capital gains purposes may fall on the sale agreement date if vacant physical possession was handed over and the arrangement amounted to part performance under section 2(47)(v). In that event, the stamp valuation relevant for section 50C would depend on the guideline value prevailing on that earlier transfer date rather than the later registered sale deed date. The record also noted a rectification deed and affidavit suggesting that the later recital on possession may have been a drafting error, but the actual handing over of possession and the applicable SRO rate still required verification. The matter therefore called for fresh enquiry on the date of transfer and the correct stamp value, and section 50C was not finally applied on the existing record.

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Issues: Whether the transfer of the immovable property occurred on the date of the sale agreement with delivery of possession for the purpose of section 2(47)(v), and consequently whether the stamp valuation adopted on the later date of registered sale deed could be applied under section 50C for computing capital gains.

Analysis: The agreement for sale recorded delivery of vacant physical possession on the date of agreement, and the assessee also relied on the rectification deed and supporting affidavit to show that the later recital in the sale deed regarding possession was a drafting error. On these facts, the relevant date for transfer required examination under section 2(47)(v) of the Income-tax Act, since an arrangement falling within part performance may constitute transfer for capital gains purposes even before formal registration. At the same time, section 50C operates with reference to the value adopted for stamp duty on the transfer instrument, and if the transfer is found to have taken place earlier, the guideline value prevailing on that earlier date becomes material. The record, however, needed further enquiry as to the actual handing over of possession and the applicable SRO rate on the agreement date.

Conclusion: The matter required fresh verification by the Assessing Officer on the date of transfer and the correct SRO value, and the applicability of section 50C was not finally determined on the existing record.

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