TaxTMI 
TaxTMI 
2025 (5) TMI 787
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....l - 52, Mumbai erred in confirming the reopening of assessment u/s. 147 done by the Ld. AO. The same needs to be quashed on one or more grounds. 3. Without prejudice to the above and without admitting, on the facts and circumstances of the case and in law, the learned Commissioner of Income Tax, Appeal - 52, Mumbai erred in completely disregarding the fact that transfer of properties had taken place during F.Y. 2010-11 relevant to A.Y. 2011-12 on execution of agreements on 30.12.2010 together with handling over the possession on that date and hence, provisions of section for transfer could not have been applied in A.Y. 2012-13. 4. Without prejudice to the above and without admitting, the learned Commissioner of Income tax, Appeal - 52, Mumbai erred in relying on the provisions of section 50C ignoring the fact that the valuation for the purpose of this section has to be considered based on the rates prevalent on the date of the first account payee cheques made for the purchase." 3. The brief facts of the case are that the assessee is an individual and has earned income from salary, business income and interest. For the year under consideration, the assessee filed his return of ....
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.... over the immovable property was also handed over to the purchaser, i.e., M/s. Dynesty Homemakers Pvt. Ltd., in the financial year 2010-11. By referring to the conveyance deed entered into between the assessee and M/s. Dynesty Homemakers Pvt. Ltd., bearing Documents No. 4381/2011, 4391/2011 and 4320/2011, forming part of the paper book at pages 33-152, the learned AR submitted that even the payment for registration as well as stamp duty charges were also paid in the financial year 2010-11. Accordingly, the learned AR submitted that since all the formalities were completed in the financial year 2010-11, relevant to assessment year 2011-12, the impugned addition under section 50C of the Act cannot be made in the year under consideration, i.e., assessment year 2012-13. The learned AR further submitted that merely because the three deeds for conveyance were registered on 27.04.2011, i.e., during the year under consideration, the same would not make any difference to the fact that the entire transaction of sale of lands was undertaken in the immediately preceding assessment year. In this regard, the learned AR placed reliance upon the decision of the Co-ordinate bench of the Tribunal in....
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....said decision of the Hon'ble Supreme Court, held that the deed of conveyance shall operate from the date of its execution and not from the date of its registration. The relevant findings of the Co-ordinate Bench of the Tribunal, in the aforesaid decision, are reproduced as follows: - "9. Therefore, as per the provisions of section 56(2)(x)(b) of the Act, where any person receives any immovable property from any person or persons on or after 01.04.2017 either without consideration or for consideration, the stamp duty value of such property exceeding such consideration shall be considered as its income from other sources, if the amount of such excess is more than the amount mentioned in the section. In the present case, the assessee has challenged the very applicability of the provisions of section 56(2)(x) of the Act on the basis that the property was received prior to 01.04.2017. In this regard, much emphasis has been placed on the fact that the deed of conveyance and other formalities such as payment of stamp duty and handing over of the symbolic possession were completed on 31.03.2017. As per the assessee, the Registration Act, 1908 requires lodging the document for registratio....
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....compulsorily registerable document is registered according to the Registration Act, it can operate from a date before the date of its registration. The date of the operation will depend on the nature of the transaction. If, in a given case, a sale deed is executed and the entire agreed consideration is paid on or before execution of the sale deed, after it is registered, it will operate from the date of its execution. The reason is that if its registration was not required, it would have operated from the date of its execution. 7. Now, we come to the decision of the Constitution Bench in the case of Ram Saran Lall (Supra). In paragraph 8 of the judgment, the Constitution Bench held thus: "8. We do not think that the learned Attorney- General's contention is well founded. We will assume that the learned Attorney-General's construction of the instrument of sale that the property was intended to pass under it on the date of the instrument is correct. Section 47 of the Registration Act does not, however, say when a sale would be deemed to be complete. It only permits a document when registered, to operate from a certain date which may be earlier than the date when it was re....
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....ale- A contract for the sale of immoveable property is a contract that a sale of such property shall take place on terms settled between the parties. It does not, of itself, create any interest in or charge on such property." 10. Every sale deed in respect of property worth more than Rs. 100/- is compulsorily registerable under Section 54 of the Transfer of Property Act. Thus, a sale deed executed by the vendor becomes an instrument of sale only after it is registered. The decision of the Constitution Bench only deals with the question of when the sale is complete; it does not deal with the issue of the date from which the sale deed would operate. Section 47 of the Registration Act does not deal with the completion of the sale; it only lays down the time from which a registered document would operate. 11. Now, coming to the facts of this case, the consideration was entirely paid on the date of the execution of the sale deed. The sale deed was registered with the interpolation made about the description/area of the property sold. The first defendant admittedly made the said interpolation after it was executed but before it was registered. In terms of Section 47 of the Registra....
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....the decision of the Hon'ble Supreme Court in Suraj Lamp and Industries Pvt. Ltd. (supra) to support the contention that the registered deed of conveyance is the only mode of legal transfer of immovable property. From the perusal of the aforesaid decision of the Hon'ble Supreme Court, we find that the issue under consideration before the Hon'ble Supreme Court was whether an immovable property can be sold by executing a general power of attorney. Answering the issue in negative the Hon'ble Supreme Court held that a general power of attorney does not convey any title nor create any interest in an immovable property and therefore an immovable property can be legally and lawfully transferred or conveyed only by registered deed of conveyance. From the perusal of the aforesaid decision, we find that the Hon'ble Supreme Court nowhere examined the issue as from which date the deed of conveyance shall become operational, which issue, as noted above, was examined by the Hon'ble Supreme Court in its decision rendered in Kanwar Raj Singh (supra)." 10. In this regard, the following observations of the Hon'ble Supreme Court in CIT vs. Sun Engineering Pvt. Ltd., reported in (1992) 198 ITR 287 (SC....