AI Drafter 
TaxTMI 
TaxTMI 
2016 (12) TMI 611
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.....00 lakhs, which was made by the AO with aid of section 50C of the Income Tax Act, 1961. Other grounds are peripheral arguments to those main issues. 3. As far as reopening of the assessment is concerned, the ld.counsel for the assessee did not press this ground. Accordingly, the ground no.1 is rejected. 4. Brief facts with regard to second fold of grievance is that the assessee was owner and in possession of a plot bearing no.105, admeasuring 1000 sq.meters situated in industrial area, GIDC Kerala. This plot was purchased by the assessee on 23.5.2006 for a sum of Rs. 9.50 lakhs. The assessee has entered into an agreement to sell of this plot with M/s.Marvel Metal & Alloys on 7.5.2007 for a consideration of Rs. 11.50 lakhs. According ....
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....r of Property Act, 1882, the transaction has taken place on 7.5.2007 when the assessee has handed over the possession, and any gain arisen to the assessee is taxable in the Asstt.Year 2008-09 and not in Asstt.Year 2011-12. In his next fold of contentions, he contended that ld.DVO has erred in not considering the objection of the assessee, and has erred in taking the rates w.e.f. 1-4-2010, that is the period when the sale deed was executed. The ld.DVO ought to have taken the rates when agreement was executed by the assessee. In his last fold of submissions, he contended that an amendment has been effected in section 50C, which has been brought on the statute book by Finance Bill, 2016. Though the amendment has been made effective from ....
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....e full value of the consideration. In other words, full consideration mentioned in section 48 is to be replaced by the consideration on which value of the property was adopted for the purpose of payment of stamp duty. 9. Sub-Section (2) of section 50C further contemplates that in case assessee alleges that stamp duty valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer, then, the AO may refer the valuation of the capital asset to the Valuation Officer. In the present case, this procedure has been followed. A reference was made to the DVO under sub-section(1) of section 50C and has valued the property at Rs. 42.50 lakhs. At this stage, let me first deal with first fold of submi....
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....of the Registration Act. "17.(1A) The documents containing contracts to transfer for consideration, any immovable property for the purpose of section 53A of the Transfer of Property Act, 1882 (4 of 1882) shall be registered if they have been executed on or after the commencement of the Registration and Other Related laws (Amendment) Act, 2001 and if such documents are not registered on or after such commencement, then, they shall have no effect for the purposes of the said section 53A. 49. Effect of non-registration of documents required to be registered.-No document required by section 17 1[or by any provision of the Transfer of Property Act, 1882 (4 of 1882)], to be registered shall- (a) affect any immovable property comprised th....
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.... the transferor or any person claiming under him shall be debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in possession, other than a right expressly provided by the terms of the contract: Provided that nothing in this section shall affect the rights of a transferee for consideration who has no notice of the contract or of the part performance thereof." 12. A perusal of section 53A of the TPA would indicate that it provides a protection to transferee to retain his possession which was taken in part performance of the contract. He was able to protect his possession even after expiry of limitation to bring a suit for specifi....
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.... has been made in valuation of market rate to the extent of 50% from the rate notified in 1999. In other words, the rates notified at Rs. 50/- per sq.meter had been revised to Rs. 75/- per sq.meter. The assessee has sold the property on 7.5.2007. The rates notified on 8.2.2007 ought to be adopted by the DVO for working out value of the property for the purpose of stamp duty. The ld.AO has taken rates of 2010 i.e. date on which sale deed was registered. On due consideration of this line of arguments, I am of the view that the ld.Revenue authorities have failed to appreciate the controversy in right perspective. The assessee has extinguished his right in the property on 7.5.2007 when this agreement was executed. Vendee could enforce this agre....