TaxTMI 
TaxTMI 
2017 (6) TMI 442
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....f the Income-tax Act, 1961 (in short 'the Act'). 3. Shri D. Anand, the Ld.counsel for the assessee, submitted that the assessee sold a flat at Eastern Wing Block No.B, 5th floor, BBC Spring Field Apartments, Old No.5, EVK Sampath Road, Vepery, Chennai-7, for a total consideration of Rs. 72,00,000/-. In fact, the entire sale consideration was received on 20.04.2012. However, the sale deed was registered only on 06.06.2012. The Ld.counsel further submitted that there was agreement for sale executed on 09.04.2012. As per this agreement, the physical possession of vacant flat was handed over to the purchaser. Therefore, under Section 2(47) of the Act, there was a transfer of property even though the registration of the document is esse....
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.... it is an admitted fact that the assessee sold an immovable property for a total consideration of Rs. 72,00,000/-. The long term capital gain was worked to Rs. 51,04,741/-. After claiming indexation of cost of acquisition, the assessee claimed exemption under Section 54 of the Act on the ground that he invested in the new asset. According to the Ld. D.R., the property was, in fact, sold on 06.06.2012 and the investment was made before the date of registration of sale deed. Therefore, the Assessing Officer found that whatever investment made by the assessee in the construction of new property before the execution of sale deed cannot be allowed as deduction under Section 54 of the Act. Therefore, according to the Ld. D.R., the investment made....
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....nored. We are conscious of the fact that under the common law, for transfer of immovable property value of which is exceeding Rs. 100/-, a registered sale deed has to be executed. However, in view of the special provisions of Section 2(47) of the Act, such a requirement under the common law, may not be applicable while interpreting Section 2(47) of the Act. Therefore, even though the assessee executed registered sale deed on 06.06.2012, this Tribunal is of the considered opinion that there was a transfer of property within the meaning of Section 2(47) of the Act on 09.04.2012 when the assessee entered in to an agreement for sale and handed over the physical possession. If the transfer of property took place on 09.04.2012, the payments were ....