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| The Tax Publishers2020 TaxPub(DT) 3809 (Agra-Trib) INCOME TAX ACT, 1961
Section 45
Where assessee sold property in the capacity of power of attorney holder and not as owner thereof, no capital gain could be taxed in assessee's hands.
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Capital gains - Chargeability - Assessee sold property in the capacity of power of attorney holder -
AO received information regarding sale of an immovable property and relying on statements of persons who had issued power of attorney in favour of assesse, held that assessee sold property as an owner and hence, capital gain was assessable in his hands. Held: Reliance by AO on oral statement of alleged sellers was misplaced as there was neither handing over of possession from these persons to the power attorney holder (assessee) nor there was reference of any sale consideration in the power of attorney holder. Even, power Attorney was also revocable. Assessee set up his case being that of power of attorney holder and needful was not done by AO to bring on record title of assessee, by virtue of which assessee became owner of the property. Accordingly, addition made by AO was deleted.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2012-13
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