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2018 (2) TMI 303 - AT - Income TaxAssessment of STCG in the hands of the Assessee - Transfer u/s 2(47) - full value of consideration received should be considered for sale of the property under the agreement - property was ultimately sold to a third party - section 50(1) applicability - Special provision for computation of capital gains in case of depreciable assets - Held that:- Admittedly there was no power of attorney whatsoever given by the assessee in favour of Shri Sanjay Todi. We are therefore are of the view that there is no merit in the contentions put forth by the assessee. We hold that the Revenue authorities were correct in coming to the conclusion that there was a transfer of capital asset by the assessee during the previous year relevant to A.Y.2007-08. In the present case the block of assets ceases to exist and therefore the provisions of Sec.50(2) of the Act would apply. Under Sec.50(2) of the Act, it is only the income received or accruing as a result of transfer that should be reduced from the WDV of the block of building as on 1.4.2006 to arrive at the Short Term capital gain. Admitted factual position is that the Assessee was to receive only a sum of ₹ 32 lacs from S.K.Todi as sale consideration in respect of the property. The admitted position is that the difference between ₹ 32 lacs and ₹ 56 lacs has already been taxed in the hands of S.K.Todi. In this factual background, we are of the view that the STCG on sale of the property has to be determined in the hands of the Assessee by adopting the income received as accruing as a result of transfer as ₹ 32 lacs and not ₹ 56 lacs. To this extent the plea of the Assessee is accepted.
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