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2019 (7) TMI 72 - AT - Income TaxCapital Gain in hand of GPA holder - the assessee was given an irrevocable GPA by the owners of the land - alleged that assessee had paid the sale consideration of ₹ 8,40,000/- in the year 1994 and obtained the irrevocable GPA - in the year under assessment assessee has executed the sale deed in favour of his daughter and in the sale deed - no consideration received from daughter - HELD THAT:- The recitals in the GPA show that the assessee is not the owner of the property but has only been granted authority to convey the property to third party. Therefore, it cannot be considered that the assessee became the owner of the property by virtue of the irrevocable GPA. In the relevant previous year, the assessee has executed the sale deed in favour of his daughter and in the sale deed it has been mentioned that the total of the sale consideration of ₹ 8,40,000/- was paid in the year 1994. This fact also cannot be accepted, because if the entire sale consideration was paid in the year 1994, then the vendors/parties or even the GPA holder could have executed the sale deed in favour of the vendee in that year itself. Therefore, the sale is only in the year 2007 but capital gain would arise in the hands of the owners of the property and not the GPA holder. Hon'ble Karnataka High Court in the case of Wipro Ltd. Vs. DCIT [2015 (10) TMI 826 - KARNATAKA HIGH COURT] has held that a deed of power of attorney is executed by the principal in favour of the agent. The agent derives a right to use his name and all acts, deeds and things done by him and subject to the limitations contained in the said deed, the same shall be read as if done by the principal. A power of attorney is a document of convenience. A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. It is revocable or terminable at any time unless it is made irrevocable in a manner known to law. Respectfully following the above judgment and since the assessee is not the owner of the property, the capital gain cannot be brought to tax in his hands. - the assessee’s appeal is allowed.
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