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2017 (4) TMI 516 - AT - Income TaxComputation of taxable Long Term Capital Gain - selection of assessment year - CIT-A directing the AO to tax the taxable Long term capital gain in respective assessment years in which the properties received were sold by the legal representative/heirs of the deceased appellant in respective hands of such legal representative/heirs - Held that:- As find that as per provisions of section 45 of the Income tax Act, capital gain is chargeable to tax in the year in which transaction of related capital asset takes place. In the instant case, the transfer which took place was 78% of undivided right of the land of A.0.450 dec on plot Nos.277 & 278/Khata No.1406. The issue before me is whether the said transaction took place in assessment year 2001-02 or not and consequently the capital gain is chargeable to tax in assessment year 2001-02 or not. Perusal of the provisions of section 2(47)(v) of the Act shows that transfer of a capital asset includes any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882. In the instant case, it is not in dispute that under a written agreement dated 18.12.1996, the assessee handed over the possession of land to the builder M/s. Atrick Construction (P) Ltd., on a consideration of ₹ 3 lakhs and 22% of the constructed area to be built by the builder. Thus, the transfer of 78% of the undivided right of the land took place in the previous year relevant to assessment year 1997-98. Thus the related capital gain is not exigible to tax in the year under consideration i.e. 2001-02. Therefore, do not find any merit in this appeal of the revenue and hence, the same is dismissed. - Decided in favour of assessee
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