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TMI Blog2019 (8) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... observed from the order of the CIT(A) that the Ld.CIT (A) has given sufficient opportunity, but the assessee did not avail the same.Therefore, this ground lacks merit, hence dismissed. Reopening of assessment u/s 147 - nature of Gain on property sold - HELD THAT:- Assessee has sold the property consisting of a residential house located at Madhavadhara for a consideration of ₹ 10,00,000/- which was registered at SRO, Dwarakanagar, Visakhapatnam on 20.02.2008. Similarly, the assessee has also sold another property of vacant site admeasuring 495 sq.yds of site out of site of 826 sq.yds situated at Kurmannapalem, Visakhapatnam to M/s Vanadurga Constructions vide document No.5647/2007 dated 18.12.2007 at SRO, Gajuwaka, Visakhapatnam. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.03.2007. As per the recitals of the agreement, the assessee has given complete possession to the builder along with original sale deed or copies thereof and other papers relating to title. Further, once the assessee had entered into agreement of sale coupled with power of attorney and handed over the possession of the property to the vendee, the transfer is complete as provided u/s 47 - we hold that the sale of property attracts capital gains tax. - I.T.A.No. 27/VIZ/2019 - - - Dated:- 19-7-2019 - Shri V. Durga Rao, Judicial Member And Shri D.S. Sunder Singh, Accountant Member For the Appellant : Shri G.V.N.Hari, AR For the Respondent : Smt Suman Malik, DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The AO found that though the assessee has sold the properties and the sale of property attracts capital gains tax and the assessee did not file the return of income. In response to the notice issued u/s 148 of the Act also the assessee did not file the return of income. Therefore, the AO issued notice u/s 142(1) calling for information on 07.07.2015, 18.08.2015, 04.09.2015, 23.10.2015 and 17.11.2015, but there was no compliance from the assessee. The AO issued show cause notice on 04.03.2016 intimating the assessee that the property sold for a consideration of ₹ 67,33,000/- located at Kurmannapalem and Madhavadhara were not disclosed to capital gains hence, proposed for taxation. But there was no response from the assessee for the sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03.07.2016. Even then, the assessee did not appear before the CIT(A). Therefore, we find no merit in the contention of the assessee that the Ld.CIT(A) has not given sufficient opportunity. 6.2. We observed from the order of the CIT(A) that the Ld.CIT (A) has given sufficient opportunity, but the assessee did not avail the same. Therefore, this ground lacks merit, hence dismissed. 7. Ground No.3 is related to the validity of issue of notice u/s 148 of the Act. The assessee has sold the property consisting of a residential house located at Madhavadhara for a consideration of ₹ 10,00,000/- which was registered at SRO, Dwarakanagar, Visakhapatnam on 20.02.2008. Similarly, the assessee has also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e consideration received on sale of flat for taxation under the head short term capital gains . Accordingly, the appeal of the assessee is dismissed on this ground. 9. The next issue is assessment of long term capital gains on account of sale of 495 sq.yds located at Kurmannapalem vide document No.5647/2007 dated 18.12.2007 at SRO, Gajuwaka, Visakhapatnam. During the appeal hearing, the Ld.AR argued that the assessee has not sold the property, it was only the sale agreement, hence, the case does not cover for the purpose of capital gains. The Ld.AR further argued that the assessee has given the property for development to Vanadurga Constructions and the assessee has neither received consideration in cash nor i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... once the assessee had entered into agreement of sale coupled with power of attorney and handed over the possession of the property to the vendee, the transfer is complete as provided u/s 47 of the Act. This view is supported by the decision of Hon ble Jurisdictional High Court decision in the case of Potla Nageswara Rao vide ITTA No.245 OF 2014 dated 09.04.2014. Therefore, we hold that the sale of property attracts capital gains tax and the AO rightly brought the sale of property under the capital gains and we do not find any infirmity in the order of the CIT(A) and the same is upheld. 12. In the result, appeal of the assessee is dismissed. Order pronounced in the open court on 19th Jul 2019. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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