Beena Shammi Choudhari (Smt.) v. ITO (2022) 64 CCH 119 / 216 TTJ 888 / 214 DTR 185 (SMC) (Pune)(Trib.)

S. 45 : Capital gains-Transfer of property in the preceding year-Transfer of property took place on execution of sale deed in the preceding year, the amount of capital gains cannot be charged to tax for the assessment year. [S. 2(47)(i), 147, 148, Transfer of Property Act,1882, S. 53A, Indian Registration Act, 1908, S. 17, 49, 171(IA)]

The Tribunal recalled the original order passed u/s. 254(1) of the Act for the limited purpose of dealing with the contention about the correct year of taxability.  The Tribunal observed and concluded that in view of the amended provisions of Section 17(1A) and 49 of the Registration Act as amended by the Registration and Other related Laws (Amendment) Act, 2001 and consequent made in Section 53A of Transfer of Properties Act r.w. Section 2(47)(v) of the Income Tax Act, the transfer of the property in question took place in the year of execution of sale deed and not in the year of its registration.  In the present case, the sale deed was executed on 15-12-2007 and accordingly, it has been held the year of chargeability of tax the Asstt. Year: 2008-09.  Refer CIT v. Balbir Singh Maini  (2017) 398 ITR 531 (SC). (AY. 2009-10)