AKUNURI SAI AVINASH,VISAKHAPATNAM vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE (INTERNATIONAL TAXATION), VISAKHAPATNAM

We have heard both the sides and perused the material available on record and the orders of the Ld. Revenue Authorities. It is the case of the Ld. AO whether the sale deed was registered on 11/5/2015 as per the sale deed copy submitted in page No.1 of the paper book. Even though the sale deed was executed on 3/3/2015, the document was registered on 11/5/2015. Further, from the recitals of the sale deed, we find that the agreed sale consideration of Rs. 14,85,000/- was paid by way of cash on various occasions. However, the sale deed failed to mention the date of payment made by the purchaser of the property. The case relied on by the Ld. AR on the ratio laid down by the Hon‟ble Supreme Court in the case of Kanwar Raj Singh (D) Th. LRs vs. GEJO (D) Th. LRs & Ors (supra), it is clear that if the consideration is paid on the date of execution of sale deed the 7 registered sale deed will operate from the date of its execution. However, in the instant case, the date of payment of consideration was not mentioned in the sale deed and hence the case relied on by the Ld. AR is of no assistance to him. In the case relied on by the Ld. DR, the Hon‟ble Madras High Court in the case of R. Krishnaswamy vs. CIT (supra) has held as follows:

In the absence of any part performance as contemplated under section 53A of the Transfer of Property Act, 1882 and as pointed out by the Supreme Court in the case of Suraj Lamp & Industries (P.) Ltd vs. State of Haryana [2012] 340 ITR 1 / [2011] 302 Taxman 607/14 taxmann.com 103, registration of sale deed alone completes the transfer….

Further, section 54 of the Transfer of Property Act, 1882 as pointed out by the Ld. DR also states that in the case of tangible immovable property transfer can be made only by a registered instrument. In view of the foregoing judicial pronouncements as discussed above and also considering the facts and circumstances of the case, we hereby uphold the directions of the Ld DRP in directing the Ld. AO to compute the capital gains based on the date of registration of the sale deed which is in the instant case AY 2016-17. Accordingly, we hereby dismiss the Grounds No. 3 & 4 raised by the assessee.

We have heard both the sides and perused the material available on record and the orders of the Ld. Revenue Authorities. On perusal of the analysis of fair market value of the Ld. DVO, we find that the Ld. DVO has adopted the amount of Rs. 1446/- per sq. yd. Additionally, he had added 45% as the subjected property was well connected and the size of the plot is regular shape and large size. We find merit in the argument of the Ld. AR that this hypothetical valuation is not valid in law as it is not calculated based on any scientific basis. Further, we also find that the Ld. DVO has not given any valid reason for computing the additional 45% on the initial value of Rs. 1446/- 9 per sq. yd. We therefore direct the Ld. AO to adopt the rate of Rs. 1446/- per sq. yd while computing the sale consideration in accordance with the provisions of section 50C of the Act and compute the capital gains. Accordingly, this ground raised

The Principal Commissioner of Income Tax, आयकरआयुक्त (अपील)/ The Commissioner of Income Tax 4. धिभागीयप्रधतधनधध, आयकरअपीलीयअधधकरण, धिशाखापटणम/ DR,ITAT, 5. Visakhapatnam गाडाफ़ाईल / Guard file 6. आदेशानुसार / BY ORDER