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2023 (11) TMI 855 - ITAT CHENNAIComputation of LTCG - Transfer u/s 2(47) - year of assessment - extinguishment of the owner’s rights in the property - claim of exemption u/s. 54 - handing over of vacant possession of the property - HELD THAT:- Legal position settled by the Hon’ble Supreme Court in the case of Seshasayee Steels (P) Ltd.[2019 (12) TMI 702 - SUPREME COURT] following the decision of Balbir Singh Maini, [2017 (10) TMI 323 - SUPREME COURT] held that the transfer will complete in regard to property rights whenever owners rights have been extinguished. In the present case before us, the rights get extinguished on 19.07.2007 and not on the date of Agreement to sale i.e., 04.02.2006. As the issue is squarely covered by the decision of Hon’ble Supreme Court in the case of Seshasayee Steels (P) Ltd., supra, and the fact in the present case is that the owner’s right to property ger extinguished on the date of registration of sale deed i.e., 19.07.2007 and the assessment of capital gain can only be made in assessment year 2008-09 and not in this assessment year 2006-07. We quash the assessment on this sole issue. This issue of assessee’s appeal is allowed.
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