INCOME TAX ACT, 1961

Section 54

Capital gains - Exemption under section 54 - Date of agreement to sale, whether to be construed as transfer - Sale deed could not be executed within prescribed time due to an order passed by competent authority

Assessee challenged order of Tribunal holding that date, 27-2-2002, could not be considered as date of acquisition, while remitting matter back to CIT(A) for fresh consideration. Case of assessee was that when he executed an agreement to sell in respect of a house property, and purchased a new residential property within one year from the date of agreement to sell and subsequently the sale deed could not be executed within a prescribed time due to an order passed by competent authority, then valid transfer did take place within meaning of section 2(47), by even executing agreement to sell. Held: Since Tribunal remanded matter for fresh consideration to CIT(A) and in meantime, Supreme Court in Sanjeev Lal's case, rendered a decision, therefore, it would be just and proper to permit CIT(A) to take a decision on merits in its entirety instead of remanding matter for a limited purpose. No finding was rendered as regards effect of decision in case of Sanjeev Lal, on assessee's case as it was left to decision of CIT(A) to consider same and take a decision, in accordance with law.

Relied:Sanjeev Lal v. CIT, Chandigar, reported in [2014] 365 ITR 389 (SC) : 2014 TaxPub(DT) 2721 (SC)

REFERRED : Amarjeet Thapar v. ITO, reported in [2019] 411 ITR 0626 (Bom) : 2018 TaxPub(DT) 7977 (Bom-HC) Kishorbhai Harjibhai Patel v. Income Tax Officer, reported in [2019] 417 ITR 0547 (Guj) : 2019 TaxPub(DT) 4804 (Guj-HC)

FAVOUR : Matter remanded

A.Y. : 2004-05

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