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2016 (4) TMI 804 - AT - Income TaxLong term capital gain - Held that:- The assessee had no control over the said property. We further note that it conveyance deed was executed in favour of the purchasers of flats through the cooperative society to which the assessee was also confirming party and a sum of 2,47,60,250/- was paid by the flat owners to the builders M/S DCPL and the assessee did not get anything out of the sale consideration. The developer DC PL had paid the income tax on the income resulting from the consideration of ₹ 2,47,60,250/-. So far as the assessment by the AO of long term capital gain based on the sale consideration received by the M/S DCPL is concerned , the action of AO is totally wrong and unacceptable especially when the consideration flowed directly to the builder from the purchasers of the flats and nothing was received by the assessee. It is also an undisputed fact that the builder had paid the due taxes on the profits earned by it and income from the same transaction could not be taxed twice firstly in the hands of developers M/.S DCPL who received the consideration actually and second in the hands of the assessee who was just confirming party to the conveyance deed. In our opinion the assessee must be taxed only in respect of the long-term gain on the lump sum compensation received at the time of leasing of the land ₹ 6,25,000/- being 50% of total compensation received i.e ₹ 12,50,000/- in 1979. Thus, we do not find any infirmity in the order of CIT(A) and uphold the same. We therefore, direct the AO to take the sale consideration at ₹ 6,25,000/- in the hands of the assessee and tax the long term gain accordingly if any. - Decided against revenue.
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