2013 (2) TMI 237

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....s that the land in question or the interest of the assessee was agreed to be sold on 15th October, 1996 to 15 several buyers. Deeds of conveyance in favour of five buyers were executed on 15.1.1998. The balance 10 deeds of conveyance were executed on 26th May, 2006 and registered on 27th November, 2007. The stamp duty was assessed on 27th November, 2007. The assessee offered the sale proceeds for taxation during the financial year 2005-06 = Assessment Year 2006-07. Case of the assessee is that it had received money before executing the deed of conveyance. It would appear that the deed of conveyance was executed in the financial year 2006-07 and the registration took place in the financial year 2007-08. The question arose whether Section 50C....

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...., for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer." The case of the assessee is that the provision of Section 50C has no manner of application because on the date when he received the money by way of sale proceeds neither the deed of conveyance had been executed and naturally it could have been registered on that date. We already have indicated that the sale proceeds were claimed to have been received in the financial year 2005-06; the deed of conveyance was executed in the financial year 2006-07 and the registration of the deed of conveyance took place in the financial year 2007-08. The submission of the assessee was accepted by the CIT(A). The Revenue....

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....tion 53A of the Transfer of Property Act, 1882 (4 of 1882); or     (vi) any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the employment of, any immovable property." He submitted that going by the definition of word 'Transfer', appearing from s.2(47)(v) of the I.T. Act, the sale was completed when the consideration was received in the financial year 2005-06. Possession had already been given in the year 1996 pursuant to an agreement for sale, as indicated earlier. Section 50C had no manner of appli....