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2019 (1) TMI 1196 - AT - Income TaxReopening of assessment - long-term capital gain - possession of property - assessability of long term capital gains tax in the hands of assessee in the captioned assessment year - Held that:- In the present case, on receipt of ₹ 1 lakh and postdated cheques of ₹ 37 lakhs, which were never encashed, the possession of property remained with the assessee; the buyer Joshaba clearly admits that it never received possession. In such circumstances, where the possession of property has not been handed over and even the complete consideration for the property has not been received by the assessee except for advance of ₹ 1 lakh, then the Revenue authorities have erred in holding that transfer had taken place in financial year 2007-08 on the date of signing of deed of assignment. There may be a document by which certain rights were transferred but once the possession of property has not been handed over, the assessee does not become liable to pay capital gains tax on such transaction as the conditions laid down in section 2(47)(v) have not been fulfilled. Accordingly, order of CIT(A) is reversed in this regard and hold that no income from long term capital gains is to be assessed in the hands of assessee.
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