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2023 (3) TMI 860 - AT - Income TaxCapital gain - Taxability in the hands of GPA holder - delivery of possession of impugned property - Transfer u/s 2(15) - HELD THAT:- After considering the recitals mentioned in the sale agreement cum GPA and sale deed, there is no dispute that the assessee purchased the property for a consideration of Rs.5,00,000/- and took possession of the property on 04.04.2007 itself and sold the property to Shri K.Anil Kumar on 04.01.2011. Therefore, the oral contention of the assessee that he acted only as an agent on behalf of the owners is not at all acceptable since the recitals clearly established the sale transaction between the assessee and sellers. No hesitation to come to conclusion that the sale deed executed by the assessee on 04.01.2011 is not in the capacity of GPA holder on behalf of the original owners. There is no recital in the sale deed executed by the assessee on 04.01.2011 that the sale consideration was received by the assessee on behalf of the original owners. He has also not placed any evidence to establish that he has repaid the amount to the original owners. Therefore, the capital gains arising out of the transfer occurred on 04.01.2011 should be charged in the hands of the assessee only. AO as well as the Ld.CIT(A) has rightly taxed the capital gains in the hands of the assessee after allowing deduction of indexed cost of acquisition. Estimation of the value of the impugned property as per fair market value - Special provision for full value of consideration in certain cases u/s 50C - HELD THAT:- As per sale agreement cum GPA executed on 04.04.2007, the assessee purchased the property for Rs.5,00,000/- and sold the property for Rs.17,00,000/-. But as per the sale deed, the stamp duty value of the property is Rs.20,00,000/-. Therefore, as per section 50C of the Act, the AO has correctly computed the capital gains against the sale consideration of Rs.20,00,000/- after allowing indexed cost of acquisition at Rs.6,54,090/- and arrived at the long term capital gains. Assessee appeal dismissed.
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