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2023 (2) TMI 702 - ITAT CHENNAIComputation of capital gains from transfer of property - Transfer u/s 2(47)(v) - assessment year - assessee along with his two brothers has executed the POA in favour of Shri. A. Sreedharan and relinquished right and interest in the property in favour of the purchaser - HELD THT:- Deemed transfer referred in to section 2(47)(v) took place in the assessment year 2013- 14, and thus, the assessee has rightly computed capital gains and offered to tax in the assessment year 2013-14. As regard the observation of the AO on the basis of subsequent sale deed dated 18.07.2013 and computation of capital gains for the assessment year 2014-15, we find that although, the POA holder executed registered sale deed dated 18.07.2013, but sale deed has been executed in favour of Mrs. Krishna, assessee’s wife. What we understood is that POA holder had purchased a property from the assessee in the year 2012-13 by way of registered POA coupled with sale receipt dated 02.01.2013 and has only completed the formality of registration of documents in favour of his wife on 18.07.2013 - AO is completely erred in computing capital gains in the impugned assessment year on the basis of subsequent sale deed dated 18.07.2013, even though the assessee has made it very clear, he has offered capital gains in the assessment year 2013-14. AO himself has given credit for the amount of capital gains declared for the assessment year 2013-14, while computing capital gains in the impugned assessment year. Once the AO came to the conclusion that the assessee has offered capital gains in the earlier assessment year, then there is no reason for the AO to compute capital gains on transfer of very same asset in the impugned assessment year, because transfer will not take place in two assessment years. CIT(A), without considering relevant facts simply sustained additions made by the AO and thus, we set aside the order passed by the CIT(A) and direct the AO to delete the additions made towards capital gains from sale of property for the impugned assessment year. Appeal of assessee allowed.
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