Prakash Chand Bethala (HUF) Vs ITO (ITAT Bangalore)
In , the Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) allowed the appeal filed by the assessee for Assessment Year 2007-08 and deleted the addition of Rs.26.08 lakh relating to long-term capital gains.
The case concerned sale of an immovable property. The assessee had entered into a sale agreement on 08.03.1993 for consideration of Rs.9,80,500, while the registered sale deed was executed much later on 09.03.2007. At the time of registration of the sale deed, the stamp duty value of the property was determined at Rs.2.7 crore.
Originally, assessment under Sections 143(3) read with 147 was completed on 12.07.2013 by computing capital gains based on the guidance value prevailing on the date of registration of the sale deed. The addition was confirmed by the Commissioner of Income Tax (Appeals).
On further appeal, the Coordinate Bench of the ITAT held that transfer of the property had taken place on 08.03.1993, being the date of the sale agreement, and not on 09.03.2007 when the sale deed was registered. Accordingly, the Tribunal directed that the stamp duty value applicable on the date of the agreement should be considered instead of the value prevailing on the date of registration.
