TaxTMI 
TaxTMI 
2017 (10) TMI 868
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.... of the lower authorities of denial of deduction u/s 54B of the Act in relation to the Investment in agricultural land. The brief facts of the case are that the assessee during the year under consideration sold land for a consideration of Rs. 1,29,00,000/- and claimed deduction u/s 54B of the Income-tax Act, 1961 (in short 'the Act') claiming purchase of following agricultural lands:- i) Agricultural land at Kiratpur Rotwara, Tehsil Phagi Jaipur of Rs. 28,84,500/- though a registered sale deed dated 6.5.2013. ii) Agricultural land at Village Dudu, Tehsil Mojmabad, Jaipur for Rs. 1,00,00,000/- through an agreement to sell dated 16.4.2014. The Assessing officer though allowed the deduction in respect of purchase o....
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....ssfully contested the appeal before Ld. CIT(A). 5. Before us, Ld. Authorised Representative of the assessee has reiterated his submissions as were made before the lower authorities. He has further submitted that the assessee was prevented by sufficient cause for not registering the deed of the purchase of property as the alienation of the same was stayed by the ADM and that the assessee was not aware of the said Stay Order at the time of entering into the transactions. He has further relied upon the following decisions and submitted that for the claim of deduction u/s 54 of the Act, the registration of sale deed is not necessary. It is enough if the assessee has paid the consideration, acquired the possession with full rights and has ful....
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.... transferee / vendee and when such a right is created, the vendor is restrained to sell the said property to someone else because the transferee has got a legitimate right to enforce specific performance of said agreement to sell. In normal circumstances, it cannot be said that entire property have been sold at the time when agreement to sell is entered into. However, looking at the provisions of section 2(47) of the Income-tax Act, 1961, 'transfer' in relation to the capital asset is complete if a right in a property is extinguished by executing an agreement to sell, the capital asset can be deemed to have been transferred. The Hon'ble Supreme Court thus held that the transfer was compete on the execution of agreement to sell and that ....
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....hat if capital gains are deemed to have been earned by the assessee on transfer of land as per the provisions of Section 2(47) of the Act, as per which the registration of the sale deed is not necessary, the consequences are that the seller or the assessee is said to have transferred his right in property and consequently those rights are acquired by the transferee; if in the case of transferor the same is to be treated as sale, then, we do not find any reason to give a different meaning to the word 'Purchase'. If someone has sold a property, consequently the other person has purchased the said property. If the transfer of property is complete as per the definition of transfer u/s 2(47) of the Act, the assessee is made labile to pay tax on ....