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2022 (1) TMI 1264 - ITAT HYDERABADLong Term Capital Gain or Short term capital gain - joint property sold - assessee and his brother has entered into an agreement of sale - AO invoked provisions of section 50C of the Act and adopted the SRO value for calculating the capital gains at Rs.34,16,000 as against the sale consideration adopted by the assessee in the sale deed of Rs.23,50,000 - HELD THAT:- The assessee and his brother sold the property on 13.10.2008 only. Therefore the documentary evidence fairly establishes that the assessee had purchased the property on 10.07.2006 and sold the same on 13.10.2008. Therefore AO has correctly computed the STCG. In this case, the assessee did not place any evidence before the authorities below as well as before us. Moreover, the assessee did not appear before the AO to establish the said fact inspite of repeated notices. Before us also, the assessee had not placed any satisfactory evidence that the sale transaction has been completed in Feb., 2001 except the cancellation of telephone connection in the property purchased by the assessee, it is difficult to come to a conclusion based on the cancellation of telephone connection that they are in possession of the property. Apart from this, the GPA was registered as document No.2691/2006 on 30.06.2006 at SRO, Chikkadpally, Hyderabad. Therefore, we are of the view that the sale has taken place only on 10.07.2006. Hence the Assessing Officer as well as the learned CIT(A) has rightly came to the conclusion that the assessee is entitled only for STCG. Hence, we do not find any infirmity in the order of Assessing Officer as well as the learned CIT(A). Hence this ground raised by the assessee is dismissed. Denial of deduction u/s.54 - deduction u/s. 54 of the Act on purchase of residential property vide Agreement of Sale cum General Power of Attorney in the name of Smt. Shamim Begum, wife of the assessee and Mohammed Saleem - As per revenue assessee did not file ownership rights of the property and he is only a GPA holder, hence he has no ownership right over the property, the assessee is not entitled for deduction u/s. 54 - HELD THAT:- In this case, the assessee entered into an Agreement of sale cum GPA which was registered, vide Document No.3374/08 dt.15.10.2008. Apart from this, he has not placed any evidence before the lower authorities as well as before us establishing that he purchased or constructed a residential house as per provisions of section 54 of the Act. Therefore in the absence of any such evidence, the A.O. as well as CIT(A)dismissed the instant ground raised by the assessee. The assessee failed to establish ownership right over the residential property but being only a GPA holder and Agreement holder. After considering the findings of the lower authorities, we do not find any infirmity in the orders of authorities below. Hence ground raised u/s. 54 of the Act by the assessee is dismissed.
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