SH. SANJEEV LAL ETC. ETC. vs. COMMISSIONER OF INCOME TAX CHANDIGARH&AN

C.A. No.-005899-005900 - 2014Supreme Court01 July 201416 pages
For Petitioner: ASHOK K. MAHAJAN
AI SummaryAllowed

What did the Supreme Court hold?

The Supreme Court held that the date of the agreement to sell, not the sale deed registration, should be considered the date of transfer for Section 54 benefits. This is because the agreement created a right in the vendee and extinguished a right of the appellants, and the delay in sale deed execution was due to a court order.

What were the facts?

Appellants sold a residential house and purchased another within the stipulated period under Section 54. However, an agreement to sell was executed more than a year before the sale deed registration, due to a court injunction. The tax authorities denied Section 54 benefits, considering the sale deed registration date as the transfer date.

What were the issues?

Whether the 'date of transfer' for Section 54 of the Income Tax Act should be the date of the agreement to sell or the date of the sale deed registration, especially when the latter is delayed due to court orders.

Which sections of the Income-tax Act were involved?

Section 54,Section 2(47),Section 45

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Cause title — parties, addresses and appearances
Page 1 JUDGMENT 1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL Nos.5899-5900 OF 2014 (Arising out of SLP (c) Nos.16958-59 of 2013) Sh. Sanjeev Lal Etc. Etc. Appellants Versus Commissioner of Income Tax, Chandigarh & Anr. Respondents

JUDGMENT ANIL R. DAVE, J.

1.

Leave granted.

2.

As facts of both the appeals are similar, at the request of the learned counsel appearing for the parties, both the appeals had been heard together.

3.

Being aggrieved by the judgments delivered by the High Court of Punjab and Haryana in ITA Nos. 153 & 154 of 2012 dated 29th January, 2013, these appeals have been preferred by the assessees.

Page 2 JUDGMENT 2

4.

The facts giving rise to the present litigation, in a nutshell, are as under: A residential house, being House No. 267 situated in Sector 9-C, Chandigarh, was a self acquired property of Shri Amrit Lal, who had executed a Will whereby life interest in the aforestated house had been given to his wife and upon death of his wife, the house was to be given in favour of two sons of his pre-deceased son - late Shri Moti Lal and his widow. One of the above stated grand children and the daug

The order continues below.

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