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2017 (4) TMI 291 - AT - Income TaxCapital gain - STCG OR LTCG - Held that:- As already even though clause 4 of the agreement indicates that possession will be handed over at the time of registration, there is no registration so far, but possession was handed over according to Assessee. If clause 6 is to be considered, as another one restricting the possession, then entire consideration, barring small amount, was received by August 2007, which is within the 36 months period, to consider the capital gain as long term capital gain. The agreement itself indicates, by clause 12, that Assessee has handed over position as on 02-04-2007, which was relied on by the Ld. CIT(A). Considering the principles laid down in the case of Potla Nageswar Rao [2014 (8) TMI 636 - ANDHRA PRADESH HIGH COURT] relied on by the CIT(A), it is of the opinion that Assessee did indeed handed over the possession as on 02-04-2007 or deemed to have been handed over on that day. Accordingly, the orders of the A.O and CIT(A) treating the capital gain as short term capital gain has to be accepted and the orders are accordingly confirmed. Whether the capital gain cannot be treated in this year? - Held that:- Since Assessee himself has offered the capital gain during the year, by filing the revised return, which was later regularized u/s 148 of the IT Act, there is no merit in Assessee’s contention on that issue. Since A.O noticed that Assessee did sell property, which was reflected by the company in their books of account, the revised return filed itself is the basis for reopening of the assessment. In view of that, the grounds raised by Assessee on these issues are accordingly rejected.
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