COMMISSIONER OF INCOME TAX Vs. R.SUGANTHA RAVINDRAN

JUDGEMENT

(1.) The Revenue is on appeal in respect of the assessment year 2005-2006. The following is the substantial question of law that arise for consideration of this Court in this appeal:

(2.) The assessee is an individual and filed her return of income for the assessment year 2005-2006 returning the total income of Rs.98,886/-. The assessee along with the two co-owners transferred a property measuring 23.84 cents in pursuance of an agreement of sale for consideration of Rs.50 lakhs to a third party. The agreement was not a registered one. Pursuant to the sale agreement, the physical possession of the property was handed over to the buyer and the assessee also received the sale consideration. The assessee worked out long term capital gain and admitted 1/3rd share therein for tax. The assessing officer referred the matter to the stamp valuation authority in order to find out the value of the property for payment of stamp duty. As the guideline value given by the stamp valuation authority was found to be higher than the consideration as per the agreement of sale, by invoking the provisions of Section 50C of the Income Tax Act, the assessing officer computed the long term capital gain by adopting the guideline value as the sale consideration instead of the consideration admitted by the assessee. As against the same, the assessee went on appeal before the Commissioner (Appeals). The first appellate authority allowed the appeal by holding that Section 50C of the Income Tax Act can be invoked only when the property was transferred by way of registered sale deed and assessed for stamp valuation purposes. The further appeal preferred by the Revenue before the Tribunal was dismissed by holding that Section 50C could not be invoked as the property was not transferred by way of registered sale deed. Both the appellate authorities relied on the decision of the Tribunal at Jodhpur in the case of Navneet Kumar Thakkar Vs. Income Tax Officer,2008 298 ITR 42. Aggrieved against the same, the present appeal is preferred by the Revenue.

(3.) Learned counsel for the Revenue submitted that Section 50C is applicable to the case of the assessee and he further submitted that the word "assessable" introduced by way of Finance (No.2) Act, 2009, though with effect from 01.10.2009, has to be treated as applicable even in the case of assessee as the intention of the legislation is to bring all the transactions where the registration of sale has not taken place also.