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2022 (1) TMI 986 - ITAT INDOREReopening of assessment u/s 147 - eligibility of reasons to believe - Addition of LTCG - taxability of the capital gain - HELD THAT:- We find that Ld. AO come across information through Annual Information Report that a registered sale deed was registered by Sub-registrar on 21.10.2009. Sale consideration stated is ₹ 30,00,000, but market value assessed by the Sub- Registrar is ₹ 1,31,00,000/-. There were 22 persons who jointly sold the immovable property in question. PAN No. of the assessee was not mentioned in the registered sale deed. In our view these information were sufficient enough for the Ld. AO to move ahead and issue notice u/s 148 of the Act to examine the transaction. Issuing of notice in itself cannot be given certainty that the addition will be made in the hands of assessee. By way of issuing notice Ld. AO gathers the information and examine the transaction and making addition in the hands of assessee comes at a subsequent stage i.e. during assessment proceedings. The assessee’s case was not scrutinized u/s 143(3) of the Act for A.Y. 2010-11 and information was received by the Ld. AO from external sourced. We accordingly dismiss legal ground raised by the assessee challenging the validity of assessment proceedings by issuance of notice u/s 148 of the Act. Taxability of the capital gain - As per the definition of ‘transfer’ provided in subclause (v) of section 2(47) of the Act, if possession is being given in lieu of consideration, then for the purpose of Income Tax it is to be assumed as ‘transfer’. We also find that the sale deed got finally registered on 21.10.2009 but the gap between the presentation of sale deed on 27.11.2007 and the deed getting finally registered on 21.10.2009 is attributable only for the necessary formalities being carried at the Sub-Registrar office as number of sellers were 22. We are of the considered view that for the purpose of taxability of the capital gain, the transfer of property took place during F.Y. 2007-08 when the sale deed was signed and presented for registration before Sub-Registrar on 27.11.20007 and by this date total sale consideration was received from the buyers M/s Sarthak Innovations Pvt. Ltd. It is also established fact that the assessee has disclosed this transaction in its income tax return for A.Y. 2007-08. AO erred in making the addition for Long Term Capital Gain in the hands of assessee during A.Y. 2009-10. The finding of Ld. CIT(A) is set aside and the ground raised on merit by the assessee are allowed.
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