2017 (5) TMI 1807

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....ply dated 10.12.2014 the assessee submitted copies of sale deeds relating to eight properties wherefrom the Assessing Officer observed that the sale consideration shown by the assessee for calculation of capital gain was less than the valuation of Stamp Valuation Authority. In this regard, the Assessing Officer made the following observations from these sale deeds: - In view of the above, the Assessing Officer observed that there was difference of Rs.68,98,200/- between the sale consideration and the valuation of Stamp Valuation Authority and, therefore, provisions u/s 50C of the Income Tax Act are clearly attracted. He, therefore, issued a questionnaire questionnaires u/s 142(1) of the Act dated 23.01.2015 and 04.02.2015 thereby asking the assessee to show cause as to why the difference amount of Rs.68,98,200/- between the market value as per Stamp Valuation Authority within the meaning of section 50C (Rs.1,37,94,000/-) and the sale consideration (Rs.68,95,800/-) for sale of properties should not be added to the income of the assessee. In its reply dated 28.01.2015 the assessee submitted as under :- "A show cause notice dated 23.01.2015 has been issued in the name of t....

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....ocation where the land of assessee was located and which was sold by it in the F.Y. 2011-12 when actual sale deed was executed has been increased from Rs.18,33,000/- per hectare to Rs.50,00,000/-. For this reason the stamp duty value had substantially increased in the year of actual registry i.e. A.Y. 2012- 13. Photocopy of Prevailing Guideline Rate for said Land in F.Y. 2010-12-is enclosed for your kind reference. 1.5] The assessee has made an application in the Office of Collector, Dhar to grant it permission for sale of said Industrial Land to the proposed buyers as per the provisions of M.P. Land Revenue Code , 1959 since the said Land was a diverted Land and prior permission from the office of the collector was required before it can sale. 1.6] The Collector of Dhar has however passed the order on 22.03.2012 and granted the permission to the assessee for sale of said Diverted Land to the proposed buyers. Copy of Order as passed by the Ld. Collector Dhar on 22.03.2012 is enclosed for your kind reference. 1.7] That as per the said order the Collector has directed the Dy. Registrar Dhar to do the registry of said Land on Value as per the Prevailing Guid....

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.... 3.6 Above argument of the assessee is not acceptable because it is based on half representation of the facts. If we carefully read the agreement furnished by assessee, many facts come in the picture that in F.Y. 2010-11 transfer did not take place ,as it was not ascertainable and it was not transferred within the meaning of section 2(47) of I.T. Act. First of all page number 280 and 281 of the aforesaid agreement furnished by the assessee are to be examined (scanned copies are as under):- Thus from above pages it becomes clear that transfer did actually took place on F.Y.2011-12 and not in F.Y.2010-11.Major reasons of this conclusion are as below : 1. from page no. 280 of this agreement it is clear that amount of Rs. 54,95,800/- was to be received by assessee in F.Y. 2011-12. This amount is more than 75% of the sale consideration. Thus the major sale consideration was received by assessee in F.Y. 2011- 12 only. 2. Even the language of agreement is very clear from which it can be ascertained that the relevant transfer was subject to the permission of sale by collector. Thus only the agreement does not ascertain the transfer of this property, but permis....

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....ve and the detailed submissions of the appellant are reproduced at Para No.3 above. During the course of appellate proceedings the appellant has reiterated what was stated during the assessment proceedings. 5.1: From the material on record it is seen that it is an admitted position that the sale agreement was dated 29.11.2010 and an amount of Rs.1400000/- was received by the appellant as advance towards the sale. The total sale consideration was Rs.6895800/-. AO has not accepted the contentions of the appellant by observing that the sale was not complete as only a small percentage of the total consideration was received and possession was not handed over and that the sale was subject to the permission of the collector as mentioned in the agreement. The appellant has contended that the registry could not be made in the year of agreement as the permission of collector was received only on 22.3.2012 although application for the same was made. Appellant has placed reliance on the decision in the case of ITO Vs Modipon Ltd. 168 TTJ 480 (ITAT Delhi) in support of the contention that the circle rate prevailing on date of registration of agreement to sell and not circle rate as on....

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.... agreement to sell in respect of a capital asset had been executed on 27th December, 2002 for transferring the residential house/original asset in question and a sum of Rs. 15 lakhs had been received by way of earnest money. It is also not in dispute that the sale deed could not be executed because of pendency of the litigation between Shri Ranjeet Lal on one hand and the appellants on the other as Shri Ranjeet Lal had challenged the validity of the Will under which the property had devolved upon the appellants. By virtue of an order passed in the suit filed by Shri Ranjeet Lal, the appellants were restrained from dealing with the said residential house and a law-abiding citizen cannot be expected to violate the direction of a court by executing a sale deed in favour of a third party while being restrained from doing so. In the circumstances, for a justifiable reason, which was not within the control of the appellants, they could not execute the sale deed and the sale deed had been registered only on 24th September, 2004, after the suit filed by Shri Ranjeet Lal, challenging the validity of the Will, had been dismissed. In the light of the aforestated facts and in view of the defin....

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....g to the assessment year 2012-13. Therefore, the application of section 50C of the Act is the year of transfer i.e. the period under consideration. The learned DR submitted that the Assessing Officer was correct in taking different value between the valuation of stamp valuation authority and sale consideration shown by the assessee in its computation of income u/s 50C of the Act. The learned DR strongly pointed out that the assessee received only 25% of sale consideration in the assessment year 2011-12 and all other formalities completing the transaction of transfer of property such as handing over possession and execution of registered sale deed was shown in the assessment year 2012-13, therefore, the Assessing Officer was right in taking the stamp valuation authority valuation for calculating the income of the assessee u/s 50C of the Act. 6. The learned DR submitted that the amendment has been brought in section 50C of the Act by Finance Bill, 2016 wherein it has been provided that the date of agreement will be effective from 1.4.2017. The learned DR submitted that in the present case the transfer of land took place before 14.2017, therefore, the Assessing Officer rightly cons....

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....sons beyond the control of the assessee viz. permission to sell from the Collector could not be obtained in that year itself and the same could be obtained in the assessment year 2012-13. 10. At this juncture, it would be profitable to take respectful note of the decision of the Hon'ble Apex Court in the case of Sanjeev Lal (supra) wherein sitting for the Apex Court of India, their Lordships held that when the agreement to sell in respect of any capital asset is made then obviously some rights had been transferred in favour of the vendee/purchaser and the remaining rights which the appellant-seller had in respect of the capital asset, in question, had been extinguished as after execution of the sale agreement it is not validly permissible to sell the same property to someone else as per the provisions of Transfer of Property Act. 11. So far as the next question posed to us i.e. amendment inserted by way of Finance Act, 2016 w.e.f. 1.4.2017 to the said provision for full valuation of consideration in certain cases u/s 50C of the Act is concerned, the mandate of the legislature is that where the date of agreement fixing the amount of consideration and the date of registrati....

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....µà¤¿à¤•à¤¾à¤¸à¤–ण्ड नालछा राजस्व 20,90,000/- 13,23,800/- Document 2 Khandelwal Gram निरीक्षक मण्डल क.1 तहसील Ghatabillod जिला धार औद्योगिक प्रयोजन Tehsil Dhar. Shri Kailash Chandra Mungad 2/4, Mahesh Nagar, Indore भूमि क्षेत्रफल 0.209 हेक्टेयर पानखेड़ी घाटाबिल्लौद मार्ग पर स्थित भूमि परिवर्तित भूमि ग्राम सेजवाया 7,66,200/- पटवारी हल्का नम्बर 55 व....

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.... Gram विकासखण्ड नालछा राजस्व Ghatabillod Tehsil | निरीक्षक मण्डल क.1 तहसील Dhar. जिला धार औद्योगिक प्रयोजन भूमि क्षेत्रफल 0.209 हेक्टेयर पानखेड़ी घाटाबिल्लौद मार्ग पर अन्दर की ओर स्थित भूमि Smt. Beena परिवर्तित भूमि ग्राम सेजवाया 7,66,200/- Khandelwal W/o Shri | पटवारी हल्का नम्बर 55 __Sachin_Khandelwal, à....

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....र 55 Prakash विकासखण्ड नालछा राजस्व Gram निरीक्षक मण्डल क.1 तहसील Tehsil जिला धार औद्योगिक प्रयोजन भूमि क्षेत्रफल 0.209 हेक्टेयर पानखेड़ी घाटाबिल्लौद मार्ग पर 12,54,000/- 4,87,800/- 12,54,000/- 4,87,800/- 20,90,000/- 13,23,800/- Document 3 Smt. स्थित भूमि Beena | परिवर्तित भूमि ग्राम सेजवाया 11,49,300/- Khandelwal W/o Shri | पटवारी हल्का नम्à¤....

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....¤¾à¤° आठ सौ रूपये) Document 5 विक्रेता प्रथम पक्ष द्वारा कलेक्टर महोदय से भूमि विक्रय की अनुमति प्राप्त होने एवं विक्रय प्रतिफल की अवशेष राशि होने पर विक्रेता प्रथम पक्ष द्वारा बिना किसी आपत्ति के क्रेता द्वितीय पक्ष के हित में या क्रेता à¤....

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....े पूर्व मध्य प्रदेश भू-राजस्व संहिता 1959 की धारा 165 (5) (क) के अंतर्गत न्यायालय कलेक्टर महोदय के समक्ष विधिवत आवेदन प्रस्तुत कर अनुमति प्राप्त करेंगे। अनुमति प्राप्त करने एवं इस पर होने वाले व्यय की क्रेता द्वितीय पक्ष की कोई जवाबदारà....

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....¤‚ भूमि को पंजीकृत नहीं करवाते हैं तो क्रेता द्वितीय पक्ष को विक्रेता प्रथम पक्ष के विरूद्ध व्यवहार न्यायालय में अनुबन्ध के विनिर्दिष्ट पालन से संबंधित वाद (Suit for Specific Performance of Agreement) प्रस्तुत कर अपने पक्ष में विक्रयपत्र को पंजीयन कराने का अधि....

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....ख को पंजीकृत करवाने के लिये तथा उसमें लगने वाले समस्त व्यय के लिए विकेतास प्रथम पक्ष पूर्ण रूप से जवाबदार होकर सम्पूर्ण व्यय वहन करेगा। 8. यह कि उक्त भूमि को विक्रय रीति से अंतरित करने हेतु विक्रेता प्रथम पक्ष सक्षम अधिकार गृहिà....

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....¨à¥à¤¨ नाम से करवाने हेतु स्वतंत्र रहेंगे इस संबंध में विक्रेता प्रथम पक्ष को किसी प्रकार की आपत्ति या उजर करने का अधिकारी नहीं रहेगा। 10. यह कि, विक्रेता प्रथम पक्ष एतद् द्वारा घोषित एवं निश्चित करते हैं कि उक्त सम्पत्ति विक्रेता प....

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....हैं, किसी प्रकार की आपत्ति आने पर उसका निराकरण विक्रेता प्रथम पक्ष के द्वारा अपने व्यय से किया जावेगा तथा आपत्ति के निराकरण तक अनुबंध की समय सीमा स्वमेय बढ़ जावेगी, जिसमें क्रेता द्वितीय पक्ष की कोई जवाबदारी नहीं रहेगी। 12. यह क....

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....•à¤¾ उक्त संपत्ति पर किसी भी प्रकार का हस्तांतरण योग्य हित अथवा अधिकारी नहीं रहेगा तथा विक्रेता प्रथम पक्ष को उक्त संपत्ति को किसी अन्य पक्ष को हस्तांतरण करने या अन्य पक्ष से व्यवहार करने का अधिकारी नहीं रहेगा तथा न ही ऐसा कोई कà....