Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 283 - AT - Income TaxTransfer of property and accrual of capital gain - Year of transfer of capital asset - whether the “Agreement to sell” entered by the assessee with Shri Ramaiah Reddy to sell 80% of undivided share in the land having an extent of 2 acres and 15 guntas would result in transfer of asset or not? - as per AO transaction entered between the assessee and Shri Ramaiah Reddy is akin to “extinguishment of rights” in the capital asset as per the definition of the term “transfer” given in sec.2(47) - As per assessee mere entering of “Agreement to Sell” will not result in transfer of asset - HELD THAT:- We notice that issue whether the “Agreement to sell” would result in transfer of asset or not was examined by Hon’ble Gujarat High Court in the case of Ushaben Jayantilal Sodhan [2018 (5) TMI 1275 - GUJARAT HIGH COURT] It is not the case of the AO that the provisions of sec. 53A of the Transfer of Property Act would apply to the impugned transaction. In fact, it is the submission of the assessee that the possession was never given to Shri Ramaiah Reddy. Hence, what was entered by the assessee with the above said person was mere “Agreement to sell”. In the above said decision, the Hon’ble Gujarat High Court has held that the agreement to sell will not result in transfer of asset. In that case, there is no question of any extinguishment of right, as held by the AO and confirmed by Ld CIT(A). Hence the question of assessing any capital gain in AY 2008-09 does not arise. In that view of the matter, we are unable to approve the computation of capital gain made by the AO in AY 2011-12 also. Accordingly, the computation of capital gain made by the assessee in AY 2011-12 is upheld. - Decided in favour of assessee.
|