2026 (6) TMI 866

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....er referred to as "the Act" for short], for Assessment Year (AY) 2014-15. 2. The assessee has raised following grounds of appeal :- "1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-Tax (Appeals) has erred in confirming the addition of Rs. 52,38,111/- as income from STCG in A.Y. 2014-15 without considering that, as per section 2(47)(v) of the Act, the property was actually transferred in A.Y. 2016-17 and assessee has appropriately offered the income for taxation in that year. 2. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-Tax (Appeals) has erred in confirming the addition of a sum of Rs. 52,38,....

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....spect of land bearing R.S. No.208/1 and 208/2 situated at Halol. The sale deeds were executed and registered on 12.04.2013 for an aggregate sale consideration of Rs. 1,66,09,000/-. The Assessing Officer observed that the sale deeds were duly registered in F.Y. 2013-14 relevant to A.Y. 2014-15 and accordingly held that transfer within the meaning of section 2(47) of the Act had taken place during the year under consideration. The Assessing Officer accordingly computed Short Term Capital Gain of Rs. 52,38,111/- and added the same to the income of the assessee. 3.1 The contention of the assessee before the Assessing Officer was that though sale deeds were registered on 12.04.2013, substantial consideration remained unpaid, cheques issued by....

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....dated 08.11.2013; ii. Reply of purchasers acknowledging non-payment; iii. Understanding between parties permitting retention of possession by assessee; iv. Confirmation deed dated 17.12.2015 evidencing receipt of final payment and handing over of possession. The Ld. AR further submitted that the assessee had already offered the capital gain in A.Y. 2016-17 and, therefore, taxing the same amount again in A.Y. 2014-15 would result in double taxation. 7. The Ld. DR, on the other hand, relied upon the orders of the lower authorities and submitted that the sale deeds were duly executed and registered on 12.04.2013. Therefore, according to the Revenue, transfer stood completed during Financial Year 2013-14 itself.....

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....ed sale deed nor no competent authority had annulled the transfer. The legal notice and subsequent correspondence relied upon by the assessee demonstrate delay in payment of balance consideration, however, these documents do not establish cancellation of registered sale deeds. Registration of a sale deed completes transfer for capital gains purposes. Nonreceipt of consideration or delayed payment does not defer chargeability unless the transaction itself is cancelled or legally rescinded. Mere retention of possession, or subsequent disputes between parties do not postpone the incidence of capital gains taxation when the registered sale deed continues to remain valid and uncancelled. Accordingly, we find no infirmity in the findings of the A....