TMI Blog2022 (12) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... rselves to subscribe to the view taken by the lower authorities who had brought the income/gain arising on the transfer of the property in question to tax in the hands of the assessee, who had merely facilitated the sale transaction in question in the status as that of a power of attorney holder for and on behalf of the actual owners, viz. S/sh. Tafazzul Hussain and Abbas Hussain. We, thus, in terms of our aforesaid observations setaside the order of the CIT(Appeals) and vacate the addition of long-term capital gain made by the A.O in the hands of the present assessee. Appeal of the assessee is allowed. - ITA No.147/RPR/2019 - - - Dated:- 12-12-2022 - Shri Ravish Sood, Judicial Member And Shri G D Padmahshali, Accountant Member For the Assessee : Shri Veekaas S Sharma, CA For the Revenue : Shri Debashis Lahiri, CIT-DR ORDER PER RAVISH SOOD, JM: The present appeal filed by the assessee is directed against the order passed by the CIT(Appeals)-I, Raipur, dated 11.03.2016, which in turn arises from the order passed by the A.O. u/s. 143(3) of the Income-tax Act, 1961 (for short Act ), dated 16.02.2015 for A.Y. 2012-13. The assessee has assailed the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Abbas Hussain Ss/o. Abid Ali, residents of Bhopal. It was further observed by the A.O that the aforesaid property was valued by the Stamp Valuation Authority, Raipur at Rs.3,27,93,522/-. On being queried that now when the transfer of the property in question was carried out on the basis of sale deed executed under his signature, then how he was not liable for being saddled with the consequential taxes on the profit/income arising there from, the assessee reiterated his claim that as the transfer of the property in question was carried out by him as a power of attorney holder and not as an owner, therefore, no liability qua the profit/income arising there from could be brought to tax in his hands. However, the aforesaid claim of the assesee did not find favor with the A.O for the reasons as culled out by him in his order, as under: (a) The fact of transfer of property by executing a sale deed by Shri Mohd. Yusuf is not disputed and then term transfer is complete. (b) The person who is giving effect to the transfer is Mohd. Yusuf i.e. the assessee. On transfer of the property by sale deed, gives rise to the long-term capital gain. (c) The entire sale consideration was r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erely holding a power of attorney that was executed by them in his favor to facilitate the sale of the aforesaid property, can safely be gathered on a perusal of the agreement dated 05.07.2013 which was executed between the purchaser of the property on the one hand and the objecting/consulting parties including the aforesaid owners, viz. S/sh. Tafazzul Hussain and Abbas Hussain, wherein it is categorically stated at Para 8 of the agreement that the assessee at Sl. No.10 of the said agreement was merely holding a power of attorney that was executed in his favor by the aforesaid owners of the property, viz. S/sh. Tafazzul Hussain and Abbas Hussain. Considering the aforesaid facts, there remains no iota of doubt that the property in question i.e. 4.5 acre of land (forming part of Khasra No. Part 7/6) at Moza Saddu, Pat Halka No.109/39, Raipur was sold vide a registered sale deed, dated 30.06.2011 by the aforesaid owners, viz. S/sh. Tafazzul Hussain and Abbas Hussain through their power of attorney holder i.e. the assessee. Nothing is either discernible from the record nor has been brought to our notice by the Ld. DR, which would reveal that the assesee, viz. Mohd. Yusuf had any inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ACIT Vs. Janak Raj Chauhan (2006) 102 TTJ (Asr) 297. In its aforesaid order, it was observed by the Tribunal that as the assessee before them was a simpliciter power of attorney holder on behalf of his mother and father-in-law, and there was no proof of the assessee having purchased the property, therefore, profit and gains on the transfer of the said property could not have been brought to tax in the hands of the assessee. Also, a similar view had been taken by the ITAT, Ahmedabad Bench in the case of Amit kumar Ambalal Shah Vs. ITO (2015) 68 SOT 251 (Ahd.). It was observed by the Tribunal that as per Section 1A and Section 2 of the Powers of Attorney Act, 1882 a power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property and is only a creation of an agency whereby the grantor authorizes the grantee to do the acts specified therein, on behalf of grantor, which when executed will be binding on the grantor as if done by him. Apropos the contention of the ld. D.R that as the assessee had not made available the complete addresses of the aforesaid owners, viz. S/sh. Tafazzul Hussain and Abbas Hussain and, the registered sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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