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2014 (3) TMI 356 - AT - Income TaxSale of property – Power of Attorney (POA) was cancelled - assessment in the hands of assessee as an agent or as property owner - Assessment of capital gain u/s 50C of the Act – Fair market value of the property for the purpose of indexation – whether the capital gains in question have been rightly assessed in assessee’s hands or not - Assessee contended that he had acted as power of agent on behalf of the actual owner/vendor and the sale price of the property has been wrongly increased and even the property sold has been inappropriately valued without any basis - Held that:- As per the recitals in the registered power of attorney dated 01.09.2006, no consideration had been paid by the assessee to the actual owner - In the sale deed as well, the assessee had merely acted as an agent - the stand adopted by the actual owner of having received Rs.25,00,000/-, at the time of executing power of attorney does not inspire confidence – the contents of a registered document cannot be disbelieved by a letter particularly without any other supporting evidence - earlier also the same owner had executed similar power of attorneys and revoked them later on – thus, the assessee could not have been treated as owner of the property sold on 23.10.2008 resulting in computation of capital gains in his hands – Decided in favour of Assessee.
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