TaxTMI 
TaxTMI 
2015 (10) TMI 1092
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....ers of a land situate at khasra no. 634 at village Artoni, Mathura Road, Agra. The land was mortgaged with State Bank of India, Agra, for the loan taken by the firm M/s Mehra Off Set Press in which the assessees were partners. On account of the non-payment of the outstanding dues, the Bank filed a civil suit for recovery of the amount and pendente lite interest. The suit was subsequently transferred to the Debt Recovery Tribunal. During the pendency of the proceedings, One Time Settlement was arrived at, on the basis of which, the assessees negotiated and entered into an agreement on 04.07.2001 with subsequent purchaser to sell the land at Rs. 34,71,750/- per hectare. In furtherance of the said agreement, the assessees received part conside....
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.... "Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is legally justified in confirming the findings of the learned CIT (A) holding that the agreement to sell the land under consideration was made on 04.07.2001, prior to insertion of section 50C of I.T.Act,1961 ignoring the fact that the sale deed was executed in April, 2003, the sale consideration agreed upon was paid in April, 2003 and the possession of the land was handed over to the transferee after execution of Sale Deed?" 4. We have heard S.D.Singh, the learned Senior Counsel assisted by Sri Aditya Pandey, the learned counsel for the assessee and Sri Krishna Agrawal, the learned counsel for the Department. 5. Effectively, the issue which is ....
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....r and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. [Explanation 1].--For the purposes of this section, "Valuation Officer" shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). [Explanation 2.--For the purposes of this section, the expressio....
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....ity found that the transfer took place on 01.07.2001 and, therefore, the provision of Section 50C of the Act, which came into effect from 01.04.2003 was not applicable. The reasoning adopted by the Ist Appellate Authority is as under : "I have gone through the matter and looked into the provisions of section 50C. The provisions of sections 50C also refer to the date when the asset is transferred. In the light of discussions in above paras it is clear that the transfer of the property took place on the date of the agreement dated 4th July, 2001. The provisions of section 50C were inserted by Finance Act, 2002 w.e.f. 1-4-2003 and were not in existence on the date of the agreement. Therefore the provisions of section 50C are not appli....
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....nt; or (iva) the maturity or redemption of a zero coupon bond;or (v) any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 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 enjoyment of, any immovable property. Explanation 1.--For the purposes of sub-clauses (v) and (vi), "immovable property" sha....
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....mance of the agreement. The Supreme Court, while considering the provisions of Section 2 (47) (ii) of the Act held that if a right in respect of any capital asset is extinguished and that right is transferred to someone else, it would amount to transfer of a capital asset. The Supreme Court held that once an agreement to sell is executed in favour of some person, the said person gets a right to get the property transferred in his favour and, consequently, some right of the vendor is extinguished. 13. Explanation 2 to Section 2(47) of the Act was added by Finance Act, 2012 with retrospective effect on 1.4.1962 and, consequently, the said provision would be applicable. The said explanation clearly provides that transfer of an asset include....