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2019 (2) TMI 735 - HC - Income TaxReopening of assessment - addition of capital gain - Held that:- On the basis of the agreement-to-sell produced by the assessee, the A.O. came to the conclusion that the assessee had divested herself of all rights in the property. The assessee had received full sale consideration. The assessee had handed over the possession of the property to the proposed purchasers. It was the purchasers who would be responsible for any defects in the title. The purchasers would deal with the pending litigations. A.O., therefore, taxed the entire consideration in the hands of the assessee as her 'capital gain'. The assessee did not challenge this order and the order of the A.O. thus became final. Any action on the part of the A.O. to tax the 'capital gain' in the hands of the assessee for the A.Y. 2014-15, on the strength of the subsequent sale-deed, would amount to shifting his stand from transfer of property being complete upon execution of the agreement to sale to transfer of property taking place only now upon execution of the sale-deed. It is not the case of the revenue that at the time of execution of the sale-deed the Petitioner received any further sale consideration. Under these circumstances, the impugned notice is set aside. - Decided in favour of assessee.
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