TMI Blog2019 (7) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... idered that the assessee became the owner of the property by virtue of the irrevocable GPA. In the relevant previous year, the assessee has executed the sale deed in favour of his daughter and in the sale deed it has been mentioned that the total of the sale consideration of ₹ 8,40,000/- was paid in the year 1994. This fact also cannot be accepted, because if the entire sale consideration was paid in the year 1994, then the vendors/parties or even the GPA holder could have executed the sale deed in favour of the vendee in that year itself. Therefore, the sale is only in the year 2007 but capital gain would arise in the hands of the owners of the property and not the GPA holder. Hon'ble Karnataka High Court in the case of Wip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M Baldev Singh and that he sold the immovable property bearing No.1-2- 212/B/16 admeasuring 189 sq. yards. Domalguda Sy.No.190 191, Gagan Mahal Village, Musheerabad Mandal, Hyderabad belonging to them vide document No.3513/2007, dated 22.09.2007, SRO Chikadapally, during the financial year 2007-08 relevant to the A.Y 2008-09 for a consideration of ₹ 8,40,000/- as against the market value of ₹ 38,08,000/- as per the Registration Authority. Observing that the assessee has not offered the capital gains to tax, the assessment was reopened u/s 148 of the Act. 3. The assessee did not file any return of income in response to the notice u/s 148. Therefore, the AO issued a notice u/s 142(1) along with a questionnaire, re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1994 and not in the relevant financial year and hence capital gain cannot be brought to tax in this year. The learned Counsel for the assessee has drawn our attention to the registered irrevocable GPA executed in 1994, wherein the vendors have clearly stated that they are executing the GPA only to execute the sale deed on their behalf but there is no sale of the property by virtue of the GPA. He submitted that it was not an agreement of sale cum GPA and therefore, the assessee was only a GPA holder. He also drew our attention to the contents in the registered sale deed; wherein it was clearly mentioned that the sum of ₹ 8,40,000/- was received from the vendee in the year 1994 itself and that the possession of the same was also hande ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.1334 of 1994, the assessee was given an irrevocable GPA by the owners of the land and it is stated therein that the possession was also given to the assessee to enable him to hand over the possession to the purchaser. There is no mention about the receipt of any sale consideration from whomsoever. After nearly 13 years, the assessee has executed the sale deed in favour of his daughter and in the sale deed, it is mentioned that a sum of ₹ 8,40,000/- has been received by the vendors from the vendee in the year 1994 and that the possession was also handed over to the vendee therein on the said date. As rightly pointed out by the Revenue authorities, it is not understandable as to why the GPA was executed in favour of the assessee and n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well as the judgment in the case of State of Rajasthan vs. Basant Nahata (2005) 12 SCC 77, to hold as under: 142. A deed of power of attorney is executed by the principal in favour of the agent. The agent derives a right to use his name and all acts, deeds and things done by him and subject to the limitations contained in the said deed, the same shall be read as if done by the principal. A power of attorney is a document of convenience. A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. It is revocable or terminable at any time unless it is made irrevocable in a manner known to law. 143. Therefore even if Section 2(47) is held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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