TaxTMI 
TaxTMI 
TaxTMI 
2023 (11) TMI 855
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..... 254 of the Income Tax Act, 1961 (hereinafter the 'Act'), vide order dated 31.03.2016. 2. The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the action of the AO in computing long term capital gain and disallowing the claim of exemption u/s. 54 of the Act. For this, assessee has raised various grounds which are argumentative and exhaustive and hence, need not be reproduced. 3. Brief facts according to AO are that during the year under consideration i.e., financial year 2005-06 relevant to this assessment year 2006-07, the assessee sold a residential house for a sum of Rs. 17.50 lakhs. The AO also noted that the assessee has invested the entire sale consideration for purchase of plot at Tiruvanmiyur ....
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....ter dated 26.10.2012 before the AO stating that her father Mr D Parthasarathy entered into an agreement with the Appellant to purchase the said property and paid the sale consideration and took possession of the property on 02.02.2006. Further, as per Affidavit dated 02.02.2006 field by the Appellant during the course of assessment according to which Sale Agreement between the Appellant and Mr Parthasarathy was entered on 01.02.2006 and as mentioned at page 3 of the Affidavit, the Appellant had handed over the vacant possession of the said property on 02.02.2006 in the presence of witness. She also executed a General Power of Attorney dated 02.02.2006 in favour of Mrs. P.Thilakavathy wife of D. Parthasarathy in this regard. In the light....
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.... way of crossed A/c. payee cheque bearing No.588112 dated 11.01.2006 drawn at Andhra Bank, Saidapet Branch, favouring Dr. Mrs. Meera Bai. 2. Rs. 5,00,000/- (Rupees Five Lakhs Only) by way of crossed A/c. payee cheque bearing No.777392 dated 11.01.2006 drawn at The Lakshmi Vilas Bank Ltd, Mount Road Branch, Chennai 600 006 favouring Dr.Mrs.R. Meera Bai. 3. Rs. 7,50,000/- (Rupees Seven Lakhs and Fifty Thousand only) by way of cash at the time of registration." The ld.counsel for the assessee also drew our attention to one covenant of the sale deed which is as regards to handing over of possession to the purchaser from the date of sale deed and the relevant covenant reads as under:- "The VENDOR doth hereby covenant that she is the absol....
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....rred to sale agreement dated 04.02.2006 whereby he admitted that the vacant possession of the property was handed over and the relevant, he drew our attention which is on page 2 of the affidavit, as under:- "I have handed over vacant possession of the property this day in the presence of witnesses." 6. We noted that as per Agreement to sell dated nil, the assessee will hand over the possession to the purchaser on the date of registration of sale deed and the relevant covenant 8 of the sale deed reads as under:- "8. The vendor agrees to give vacant possession of the aforesaid property at the time of registration of the Sale Deed or Sale deeds." It means that by way of registered sale deed, the assessee has received balance sale conside....
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....(47)(vi), any transaction which has the effect of transferring or enabling the enjoyment of any immovable property would come within its purview. The High Court has not adverted to the expression "or in any other manner whatsoever" in sub-clause (vi), which would show that it is not necessary that the transaction refers to the membership of a cooperative society. We have, therefore, to see whether the impugned transaction can fall within this provision. 25. The object of Section 2(47)(vi) appears to be to bring within the tax net a de facto transfer of any immovable property. The expression "enabling the enjoyment of" takes color from the earlier expression "transferring", so that it is clear that any transaction which enables the enjoyme....