Case Law Details
Dr. Sabesan Parameswaran Vs ACIT (ITAT Chennai)
ITAT Chennai held that as the PoA and sale deed are executed on the same day clarifies that PoA holder has no legal right or interest in the property. Further, GPA (General Power of Attorney) has not accounted for consideration in his ROI. Hence entire sale consideration taxable in the hands of assessee.
Facts-
The assessee has disclosed LTCG of Rs.29,81,660/- on account of sale of land. AO noted that the assessee as per sale deed received sale consideration of Rs.7,43,50,000/- and the assessee submitted the details and from the perusal of sale deed, it transpired that the assessee along with his grandmother C.T. Saraswathi has executed power of attorney in favour of one Shri S. Ramaswamy, the agent in respect of the property measuring 23586 sq.ft. i.e., 9 grounds and 1986 sq.ft., at Parameswari Nagar, L.B. Road, Adyar, Chennai. This Power of Attorney (PoA) was executed on 19.02.2015 as on the date of execution of the sale deed of this land on 19.02.2015 for a total consideration of Rs.7,43,50,000/-. The assessee explained that the assessee received this sum of Rs.30 lakhs only and hence, he has disclosed long term capital gain on Rs.28,81,660/-.
AO has not accepted the reasoning or explanation submitted by assessee and also not allowed proportionate claim of Rs.2,90,96,260/- and assessed LTCG on entire sale consideration of Rs.7,43,50,000/- and by taking assessee’s share of 2/3rd at Rs.4,92,63,696/- computed the total income. Aggrieved, assessee preferred appeal before CIT(A).
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