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2015 (5) TMI 571 - AT - Income TaxCapital gain arising out of the acquisition of land - sale of rights in the property - acquisition of property but transfer deed was not registered - short term capital gain or long term capital gain - Held that:- In the facts of the present case, where the possession of land had been given to the assessee in line with the terms agreed upon between the parties consequent to which an irrevocable Power of Attorney was executed, which has not been cancelled till date and also where the land was mutated in 7/12 records in the name of assessee by way of entry No.1777, dated. 04.11.1996 establishes the case of assessee of having acquired rights over the land as per section 53A of the Transfer of Property Act. The arrangement between the parties confirms the handing over of the possession of land though in the sale deed executed on 31.08.2000, the control and possession of land was given to the assessee as absolute owner. Applying the ratio laid down by in Chaturbhuj Dwarkadas Kapadia Vs. CIT (2003 (2) TMI 62 - BOMBAY High Court), where the assessee had acquired certain rights over the property under the Development Agreement and the irrevocable Power of Attorney and the part possession of the property having been given to the assessee, we hold that there was effective transfer on the date of execution of Agreement dated 18.01.1996. Consequently, the assessee acquired certain rights in the said property from 18.01.1996 and the compensation received by the assessee in view thereof, is to be taxed in the hands of the assessee as income from long term capital gains. We uphold the order of CIT(A) - Decided against revenue.
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