Double taxation of the same property transfer barred where capital gains were already assessed in an earlier year.

Capital gains from the same property transfer could not be assessed twice. The transaction had already been accepted as a transfer and taxed in assessment year 2004-05 under the statutory definition of transfer, with the assessee's share of consideration also assessed in that year. The Revenue could not reopen the identical transfer in assessment year 2007-08 merely because the sale deed was registered later and stamp duty valuation under Section 50C was invoked. A second assessment on the same transfer was impermissible, and the issue was decided in favour of the assessee.

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Issues: Whether capital gains arising from the property transaction could again be brought to tax in assessment year 2007-08 after the same transfer had already been accepted and taxed in assessment year 2004-05.

Analysis: The transaction had earlier been treated by the Assessing Officer as a transfer in assessment year 2004-05 under the statutory definition of transfer, and capital gains had already been assessed on that basis. The assessee's share of the consideration had also been subjected to assessment in that year, and a connected order in the brother's case had attained finality. On those facts, the Revenue could not reopen the same transaction and treat the identical asset as transferred again in assessment year 2007-08 merely because the sale deed was registered later and stamp duty valuation was invoked under Section 50C. Once the transfer had been accepted and taxed for assessment year 2004-05, a second assessment on the same transfer was impermissible.

Conclusion: The question was answered against the Revenue and in favour of the assessee; capital gains could not be assessed again in assessment year 2007-08.

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