TaxTMI 
TaxTMI 
2026 (6) TMI 966
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....u/s. 143(3) of the Act on 27-09-2021. The sole issue that arises for our consideration is qua Long-Term Capital Gains on sale of property and assessee's claim of deduction u/s. 54. 2. The Ld.AR advanced grounds and referred to various documents as placed on record. The Ld. CIT-DR stated that considering the date of sale deed, the impugned gains have rightly been held to be chargeable to tax in subsequent year and deduction u/s. 54 has rightly been denied to the assessee. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. Assessment Proceedings 3.1 During assessment proceedings, Ld. AO verified the deduction claimed by the assessee u/s. 54 of the Act against sale of a property situa....
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....red to the provisions of Sec. 45(1) r.w.s. 2(47)(v) of the Income Tax Act r.w.s. 53A of the Transfer of Property Act to state that the possession was handed over to the buyer and transfer had already taken place in this year only. However, Ld. AO held that the agreement to sell was neither registered nor notarised whereas the same required compulsory registration under the Registration Act. In such a case, the protection of possession or any benefit conferred by Sec. 53A would not be provided. The proviso to Sec.59 of Indian Registration Act only postulates that such agreement could be tendered in evidence in a suit for specific performance. It was further observed by Ld. AO that the assessee was director in M/s Paul Merchants Ltd. (the pur....
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....n 06-04-2018. A copy of search report of the property was also filed. The agreement dated 21-10-2017 was duly executed but the agreement was not registered because of lien noting in the revenue records. However, the assessee relinquished the rights in the property by virtue of agreement dated 21-10-2017 after receipt of total payment and also handed over the possession which was covered u/s. 2(47)(ii). However, Ld. CIT(A) held that legal transfer occurs only when the title deed was transferred. Therefore, the action of Ld. AO was upheld against which the assessee is in further appeal before us. Our findings and Adjudication 5. It emerges that the assessee has entered into an agreement to sell on 21-10-2017 to sell impugned property to....
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....would show that full sale consideration has flown to all the three sellers by 05-12-2017. 6. We further find that the assessee has carried out inspection of the said property and the copy of inspection report has been placed on Page No.28 of the paper book. The same read as under: - Inspection Report Inspection report of House No. 749, Sector 8-B, Chandigarh (File No. RP-12299) for the correspondence between Excise and Taxation Commissioner Sangrur and Estate office U.T, Chandigarh as follows: That the Assistant Excise and Taxation Officer, Sangrur had written a letter to Estate Office, U.T, Chandigarh vide letter no. 804, dated 28.02.2017 stating that Sh. Arvind Singla S/o Sh. Pawan Singla R/o House No. 1378, ....
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.... property sell or transfer his property to any other person. Estate Officer wrote a letter vide letter no. 246915, dated 27.03.2018 to D.C. State Tax Distt Sangrur that your letter no. 1690, dated 10.01.2018 is placed on record. Assistant Controller (F& A) Estate Office, Chandigarh wrote a letter no. 247186. dated 28.03.2018 to Sub-Registrar Office, Chandigarh to delete the red entry in the records in respect of House No. 749, Sector 8-B, Chandigarh. Upon perusal of the same, it could be seen that this property was flagged as red entry in revenue records on the instructions of Assistant Excise & Taxation Officer, Sangrur dated 28-02-2017 to the Estate Officer on the ground that one Shri Arvind Singla was the owner of th....
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....wnership would be conveyed only upon execution of sale deed, however, the facts of the case would indicate that the execution of sale deed has been postponed due to reasons which were beyond the control of the assessee. However, for all intents and purposes, the rights in the property stood transferred by 31-10-2017 and the case was covered u/s. 2(47)(ii) which provide that the transfer would include the extinguishment of any rights in the immovable property. The assessee has filed affidavit and certificate on behalf of the purchaser entity confirming the said facts which is kept on page nos. 79 to 82 of the paper book. It could be well that for all practical purposes, the assessee as well as the purchaser had complied with all the terms of....