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2022 (7) TMI 950 - AT - Income TaxCapital gain - sale of property by the legal heir with the co-owners - AO taking 1/4 th of jantri value of the land as sale consideration in the hands of appellant for arriving at LTCG capital gain - addition made in the hands of assessee on protective basis - AO observed that the assessee had sold the immovable property along with other co-owners for a total consideration as per sale deed (valuation for purpose of stamp duty) but the capital gain arising from this sale was not offered to tax - HELD THAT:- When the father of the assessee entered into Banakhat with Mr. Hammad Ali in the year 2000, and received certain amount in cash, no amount was offered to tax as capital gains tax. Secondly, there is nothing on record to show that effective possession was transferred to Mr. Hammad Ali pursuant to entering of Banakhat in 2000. Thirdly, the fact that terms of conditions of Banakhat in 2000 do not find any mention in the registered sale deed dated 28.07.2011 points to the state of affairs that the terms of the registered sale deed were not governed by the terms of the Banakhat entered into in the year 2000 and operated independently of it. Fourth, the property remained in the name of Mr. Ganpathbai Patel till transfer took place pursuant to registered sale deed dated 28.07.2011. Therefore, in our considered view, in the light of above Rulings as applied to the assessee’s set of facts, the assessee (as legal heir of the said property) is liable to capital gains tax during the year under consideration. Accordingly, we are of the considered view that Ld. CIT(Appeals) has not erred in law and in facts in holding that the assessee is liable to pay capital gains tax on her 1/4th share in the property during the year under consideration. In the result, the order of ld. CIT(A) is upheld.
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