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2022 (12) TMI 688 - AT - Income TaxLTCG - ownership of property - Liability of power of attorney holder (GPA) - income/gain arising on the transfer of the property in the hands of the assessee, acting as a sales facilitator - HELD THAT:- As observed by the Hon’ble Supreme Court in the case of ITO vs. Ch. Attchaiah [1995 (12) TMI 1 - SUPREME COURT] the income has to be assessed in the hands of the right person and the right person alone, and while giving effect to the said scheme of taxation the interest of the revenue cannot be allowed to come in the way. Thus, in the case before us, merely for the reason that the whereabouts of the real owners were either not to the knowledge of the department, or the bare minimum effort were not put in by the A.O to gather the whereabouts of the said persons who were the right persons in whose hands the LTCG on sale of the property was liable to be brought to tax, would by no means justify bringing the said income/gain to tax in the hands of a wrong person i.e the present assessee before us. We, thus, on the basis of our aforesaid observations are unable to persuade ourselves to subscribe to the view taken by the lower authorities who had brought the income/gain arising on the transfer of the property in question to tax in the hands of the assessee, who had merely facilitated the sale transaction in question in the status as that of a power of attorney holder for and on behalf of the actual owners, viz. S/sh. Tafazzul Hussain and Abbas Hussain. We, thus, in terms of our aforesaid observations setaside the order of the CIT(Appeals) and vacate the addition of long-term capital gain made by the A.O in the hands of the present assessee. Appeal of the assessee is allowed.
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