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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI S.S.GODARA
आदेश / ORDER
PER S.S. GODARA, JM :
This assessee’s appeal for AY 2011-12 arises against the CIT(A)-2, Kolhapur’s order dated 16-12-2019 passed in case No. Kop/CIT(A)-2/10370/2018-19 involving proceedings under Section 143(3) r.w.s.147 of the Income Tax Act, 1961 in short the Act.
Case called twice. None appears on assessee’s behest. He is accordingly proceeded ex parte.
Coming to the assessee’s sole substantive grievance that both the lower authorities have erred in law and on facts in holding him to have transferred the capital asset in issue in A.Y. 2011-12, it transpires with the able assistance coming from the Revenue’s side that this taxpayer had executed the
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corresponding development agreement as on 30-03-2010, i.e. relevant to A.Y. 2010-11 whose registration was completed on 01-04-2010 only. 3. Learned departmental representative vehemently argued that both the lower authorities have rightly set into motion section 148/147 mechanism in light of the foregoing registration coming into effect only from 01-04-2010 onwards. I find no merit in the Revenue’s instant arguments as this tribunal’s coordinate bench order in ITA No.1849/PUN/2018 in Smt. Beena Shammi Chaudhari Vs. ITO dated 17-02-2022 has already accepted the very issue in taxpayer’s favour as follows :
“9. Now I turn to contention of the ld. AR on section 47 of the Registration Act. This section with the heading `Time from which registered document operates‟ provides that : `A registered document shall operate from the time from which it would have commenced to operate if no registration thereof had been required or made, and not from the time of its registration‟. A document is first executed and then submitted for registration, if required. Normally, it takes some time between executing a document and its registration because the same has to be submitted for registration; checked by the competent authorities; and then actually registered. Unless a document is revoked before its actual registration, the parties submit themselves to the contents of the document by signing it, which coincides with its execution itself. Unless contrary is agreed between the parties in the document, it is from its execution that the parties intend to act upon it and make it operational. Section 47 of the Registration Act states that a registered document shall operate from the time from which it would have commenced to operate if no registration thereof had been required or made (that is, on its execution). It means that the time lag between the execution of a document and its registration is ignored insofar as its operation is concerned. Thus, all the documents, whether or not requiring registration, operate from the date of their execution and the date of registration, where registration is mandatory, is irrelevant insofar as their operation is concerned. Whereas, section 17 of the Registration Act lists the
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documents whose registration is compulsory and section 49 of the Registration Act deals with the effects of non-registration of documents required to be registered u/s 17 of that Act, section 47 of the Registration Act deals with an altogether different aspect of time from which a registered document operates. It is only after a document required to be registered is actually registered as per section 17 of the Registration Act that the controversy of timing of operation of registration comes in to play, which is exclusively covered by section 47 of the Registration Act. 10. Coming to section 45 of the Act, which is a charging section for capital gains, provides that any profits or gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in sections 54 etc., be chargeable to income tax under the head "Capital gains", and shall be deemed to be the income of the previous year in which the transfer took place. Manifestly, income under this head becomes chargeable to tax in the year in which the transfer takes place. `Transfer‟ takes place only when it becomes operational, that is, on executing the sale deed - neither before it, that is, when the parties are in the process of negotiations, nor after it, that is, when the registration of the deed actually takes place. 11. Adverting to the facts of the extant case, I find that the sale deed, even though registered on 17.04.2008, was admittedly executed on 15.12.2007, which date falls in the previous year relevant to the A.Y. 2008-09 and, as such, the amount of capital gain becomes chargeable to tax in such preceding assessment year. Since the `transfer‟ of the property took place on execution of sale deed in the preceding year, I hold that the amount of capital gain cannot be charged to tax for the A.Y. 2009-10 under consideration. On a specific query, the ld. AR candidly admitted that no capital gain was offered for taxation by the assessee in her return for the A.Y. 2008-09 or any other year. The AO is at liberty to take necessary action for taxing the amount in the correct assessment year as per law.”
I adopt the above extracted detailed discussion mutatis mutandis to delete the impugned addition of Rs.8,48,200/- under the head long term capital gains. The assessee succeeds in his sole substantive ground.
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This assessee’s appeal is allowed. Order pronounced in the Open Court on 30th May, 2022.
Sd/-
(S.S.GODARA) JUDICIAL MEMBER पुणे Pune; �दनांक Dated : 30th May, 2022 Satish
आदेश क� ��त�ल�प अ�े�षत / Copy of the Order is forwarded to : 1. अपीलाथ� / The Appellant; 2. ��यथ� / The Respondent; 3. The CIT(A)-2, Kolhapur 4. The Pr.CIT-2, Kolhapur 5. �वभागीय ��त�न ध, आयकर अपील!य अ धकरण, पुणे “SMC” / DR ‘SMC’, ITAT, Pune; 6. गाड� फाईल / Guard file.
आदेशानुसार/ BY ORDER,
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
ITA No. 243/PUN/2020 Prakash G. Ghorpade
Date 1. Draft dictated on 26-05-2022 Sr.PS 2. Draft placed before author 27-05-2022 Sr.PS 3. Draft proposed & placed before -- JM the second member 4. Draft discussed/approved by -- JM Second Member. 5. Approved Draft comes to the Sr.PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.