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2019 (6) TMI 1237 - ITAT CHENNAISale of property through power of attorney - transfer u/s 2(47) - sale of agricultural land - HELD THAT:- Assessee entered into an agreement for sale on 04.05.2012 with Shri V.R. Anbuvelrajan and Shri S. Balamurugan. The assessee did not execute any sale deed. Subsequently, in the year 2013, the assessee executed power of attorney in favour of the said Shri V.R. Anbuvelrajan and Shri S. Balamurugan. The assessee claims that the physical possession of the property was handed over to Shri V.R. Anbuvelrajan and Shri S. Balamurugan and entire sale consideration was also received from them. However, it appears no sale deed was executed by the assessee in favour of the said Shri V.R. Anbuvelrajan and Shri S. Balamurugan. The assessee claims that the sale was completed when the assessee entered into agreement for sale with Shri V.R. Anbuvelrajan and Shri S. Balamurugan and received the entire consideration after handing over the physical possession of the property. On the strength of the power of attorney executed by the assessee in favour of Shri V.R. Anbuvelrajan and Shri S. Balamurugan, they sold the property for higher consideration. Therefore, it is obvious that as claimed by the assessee, there are two different transactions. One transaction is between the assessee and Shri V.R. Anbuvelrajan & Shri S. Balamurugan. The other transaction is between Shri V.R. Anbuvelrajan & Shri S. Balamurugan with M/s Jacaranda Properties Pvt. Ltd. These two transactions have to be brought for taxation in the respective hands. These facts were not examined by the Assessing Officer. Therefore, the orders of both the authorities below are set aside and the entire issue is remitted back to the file of the Assessing Officer. - Appeal filed by the assessee is allowed for statistical purposes.
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