maninder singh (auditor) (31 Points)
04 January 2013anyone plz tell me i hsve s qns,
let
one person transfer his property to a company in which he have 51% share holding .
capital consideration paid as property transfer .
qns is this,
property purachased by one year ago, paid payment,,,but registery is pnding,
when person transfer his property to company ( 51 % holdign get ) and registery named in the name of company.
could u tell me,
property trnsfer to company snd registery in name of company,
is it leviable capital gai or not, please replt..
P.Shankarvarma
(Chartered Accountant)
(62 Points)
Replied 04 January 2013
Transferor : Person (Assumed Individual)
Transferee : Company
Capital Asset : Property
Legal opinion : As per CIT Vs. K. Srinivasan (1972) 83 ITR 346-351 (SC) the Supreme Court has expressed the view that under common law ‘owner’ means a person who has got valid title generally conveyed to him after complying with the requirements of law such as the Transfer of Property Act, Registration Act etc. But in the context of Section 22 of the Income tax Act, having regard to the ground realities and further having regard to the object of the Income tax Act, namely, “to tax the income’’, ‘owner’ is a person who is entitled to receive income from the property in his own right. The requirement of registration of the sale deed in the context of section 22 is not warranted. In view of this, where a property is handed over to a purchaser to enjoy fruits of that property by the builder, the purchaser is to be treated as ‘owner’ of that property even though no registered document
has been executed in his favour.
Hence Proprty here transfered is very well taxable under Capital Gains Head.
Any Suggestion are invited.
Thanking You.
CAclubindia
