TMI Blog2022 (6) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose. It is not in dispute that the amount received is against the sale of property but not as any advance. We have also gone through the details of purchase of the property by the assessee and also sale of said purchased property. The facts reveal that the property in question is on account of booking made by the first party, then purchased by assessee and then sold by the assessee. Thus, there are only transfer agreements without resorting to registration of the document at different times. In crux, these transactions were sale of booking of plots . Since, the sale purchase of the property is not in dispute, the natural corollary is to treat the profits or losses alike under the relevant head which in this case is capital gains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking disallowance of short term capital loss amounting to Rs.6,31,000/- on sale of property situated at Plot No. S-142, Uppal South End before the ld. CIT(A). 4. During the proceedings before the ld. CIT(A), the assessee explained that, at time of assessment, a copy of bank statement was submitted with AO where sale consideration received in respect of sale of property is reflecting. Thus there was no dispute regarding the amount of sale consideration and cost of acquisition or the amount of short term capital loss. The disallowance has been made only for want of sale deed to corroborate additionally the amount of sales consideration received amounting to Rs.1,24,44,000/-. 5. The assessee contented that AO ignored the evidence submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of India recently observed in the case of Suraj Lamp Industries Pvt. Ltd. vs. State of Haryana that it has become common practice to effect transfers of immovable property by way of either general power of attorney (GPA) sales or sale agreement, GPA or will transfers in order to evade, among Other things, the payment of duties, taxes and other fees payable on transfer and registration (eg, stamp duty or registration fees).While referring to Sections 53A and 54 of the Transfer of Property Act and its decisions in NarandasKarsondas vs. SA Kamtam and RambhauNamdeoGajre vs. Narayan BapujiDhotra, the Hon ble Supreme Court observed that a transfer of immovable property by way of sale can be effected only by a deed of conveyance. In the abs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n placed on record to substantiate the fact of transfer of capital asset, therefore, the question of capital gain/loss does not arise. The deposit in the bank account of the assessee is not taxable under the provision of section 56(2) (ix) because there are no findings on the record in respect of forfeiture of the advance received against the property. The relevant extracts of provision of section 56(2) (ix) are reproduced as under: Any sum of money received as an advance or otherwise in the course of negotiations for transfer of a capital asset, if- (a) Such sum is forfeited; and (b) The negotiations do not result in transfer of such capital asset. Heard the arguments of both the parties and perused the material av ..... X X X X Extracts X X X X X X X X Extracts X X X X
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