TMI Blog2020 (5) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... e consideration and has taken possession of the property, the Vendee becomes the owner of the property u/s.53A of the TP Act and u/s.2(47) it is a transfer of the property. The Vendee has executed the Sale Deed by virtue of the said AGPA, as he has sold the property to another party for ₹ 9,90,000/-. The sale of the property by the Vendee cum AGPA-holder cannot be considered as sale of property by the assessee. Except being described as the Vendor, the assessee is neither a signatory to the subsequent Sale Deed nor is he the recipient of any of the sale consideration - It is held that the assessee is not liable for tax on any capital gain arising out of transfer of property vide Document No.1610/2012, dt.14-03-2012. Accordingly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... handedover to the transferee of the property, Shri A.Manikyam. It was mentioned that by virtue of the above document, the Vendee became the absolute owner of the property and thereafter, Shri A.Manikyam transferred the said property by way of a registered Sale Deed, vide Document No.1610/2012, dt.14-03-2012 to Shri P.Ilaiah, Upperpally and therefore the Vendor was the AGPA-holder and not the assessee herein. Therefore, according to him, there was no transfer of property by the assessee vide Document dt.14-03-2012 and there was no capital gain which had accrued to the assessee in the light of the said sale transaction. 2.1. The AO, however, did not accept the contentions of assessee and observed that vide the Agreement of Sale cum GPA, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h regard to Sale cum GPA dated 29.11.2006 at the time of execution of the document and therefore he was not entitled for any further consideration with regard to the document dated 14.03.2012. 5. The Hon'ble CIT(A) ought to have noted that the conclusion arrived at by the assessing officer in the assessment order was against provisions of the Act as well as various judicial decisions with regard to taxation of gain resulted in the light of Sale cum GPA and therefore the addition is liable to be deleted. 6. The observation of the Hon'ble CIT(A) that the assessee did not declare the capital gain for the asst. year 2007-08 cannot be the basis for taxing capital gain in the asst. year 2012-13 in the light of facts and circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee in favour of a third person in the relevant financial year, then the assessee should have been allowed the cost of acquisition, which the AO failed to give while computing the Long Term Capital Gain. 5. The Ld.DR, on the other hand, supported the orders of the authorities below and relied upon the recitals in the AGPA to argue that the assessee is still the owner of the property and he had only executed the Agreement of Sale cum GPA in favour of Shri A.Manikyam and therefore on the execution of the Sale Deed in 2012, there is a transfer of property and assessee is liable to pay Long Term Capital Gain thereon. 6. Having regard to the rival contentions and material on record, I find that by virtue of the AGPA dt.29-11-2006, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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