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2021 (12) TMI 591 - ITAT MUMBAIAddition on account of short term capital gain - Incomplete sale - flat was leased property of Mumbai Port Trust - whether there was no transfer of flat during the year? - HELD THAT:- The flat was leased property of Mumbai Port Trust and approval of the Mumbai Port Trust was required to be obtained for handing over the possession .We also note that the assessee has received only ₹ 25,00,000/- and the balance consideration was still outstanding - assessee was to hand over the possession to the buyer only upon full and final payment of sales consideration and after obtaining NOC from Mumbai Port Trust. Possession has not been handed over as certain conditionalities are to be fulfilled like payment of balance consideration and obtaining of NOC - Mumbai Port Trust has been applied for issuing the NOC but still the same is awaited - sale is certainly not complete and it is absolute sale but a conditional sale which would be complete after satisfaction of the above two conditions. Neither AO nor ld CIT(A) have brought on record any substantive evidence to the contrary. So we are not in agreement with the conclusion of the ld CIT(A) that sale is complete. Sale of flat would only be completed after fulfilment of remaining conditions - we are inclined to set aside the order of ld CIT(A) on this issue and direct the AO delete the addition of short term capital gain. - Decided in favour of assessee.
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