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TMI Blog2023 (12) TMI 708X X X X Extracts X X X X X X X X Extracts X X X X ..... er and takes effect during the lifetime of the donor. The conclusion arrived at by the A.O that the gift was given by Sh. Kultar Singh without any consideration through his attorney i.e. Sh. Kawaljit Singh, is not inconsonance with facts of the case and is erroneous. Invocation of explanation (e) to Section 56(2)(vii) to the facts of case is also not the correct interpretation of law and has no bearing on the facts of the case. AO has not brought on record any document or evidence that would suggest that the General Power of Attorney was void or voidable. The legal validity of the said document, which was duly registered has remained outside the pale of doubt. Thus, by virtue of the GPA, absolute power of ownership has been vested in the donor. The power to gift is a consequential outcome of the said power. Gift deed was duly executed following legal procedures, including payment of applicable stamp duties. The said document remains a valid legal instrument, in the context of lack of any adverse inference brought on record by the Assessing Officer. Thus from the available documents, it is also, without any doubt that the donor and done are related, the appellant being the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e u/s 143(2) of the Act was issued along with questionnaires. The AO noted that the property no. 5/22 Roop Nagar, was purchased by Sh. Kawar Kultar Singh from Delhi Development Authority by virtue of a sale deed dated 15.07.1970. On 21.02.2011, Sh. Kultar Singh executed a General Power of Attorney in favor of his brother Sh. Kawaljit Singh, empowering him to sell, transfer or gift the property in any manner as deemed fit. The document was duly registered in the office of the sub-registrar, SD-1, Delhi. Sh. Kawaljit Singh subsequently through a giftdeed transferred the property to his daughter in-law the (appellant). The gift deed was executed by virtue of the powers granted to him under the General Power of Attorney. The gift deed is dated 23.08.2014. Later on, the assessee sold the property on three different dates - on 05.05.2015, 06.05.2015 and 09.03.2015. The issue for determination is arising out of the said transaction. The submission filed by assessee has been considered by the AO and not found tenable due to following reason: i. The assessee has Stated that Shri Kanwaljit Singh, the father in law of assessee, became the owner of the inherited property by virtue of clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is typically a cash endowment given to younger heirs. So it is also a matter of fact whether the assessee is covered under the legal heirs as per Hindu Succession Act. vii The assessee has stated that since the property is a inherited property which she received through a gift deed, hence she is eligible for getting indexation benefit thereon. As stated above the property was belong to the brother of her father in law and not her own father in law, hence it is not a inherited property, therefore the holding of previous owner for calculation inflation index is not allowable to the assessee. viii. The facts of case laws cited by assessee are not matching with the facts of the assessee. 3.1. Based on above discussion the AO held that the following conclusion has been drawn: i. The assessee has not paid any amount for acquisition of property except stamp duty and transfer charges, hence, the cost of acquisition of property has been considered at Rs. 42,29,800/-. ii The holding of the property in the hand of the assessee was less than 36 months, the property is treated as short term capital assets and hence, the capital gain arose on the sale of property is short term c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d hereunder :- (i) That the property which is the subject matter of dispute was acquired by the appellant by way of a gift. (ii) The said gift deed was duly registered and applicable stamp duty has been paid thereon. (iii) The property was gifted by father-in-law the donor) to his daughter-in-law (donee), out of natural love and affection. [this is evident from the copy of the gift deed submitted by the appellant]. (iv) That the donor had also acquired absolute ownership of the property on account of a registered General Power of Attorney entered into between him and his brother. 5.4 Therefore, taking into account facts of the case, it cannot be denied that the appellant acquired the property by way of gift. A gift is defined under the Transfer of Property Act, 1882 as the transfer of certain existing moveable or immovable property, made voluntary and without consideration, by one person, called the donor, to another, called the donee and accepted by or on behalf of the done. By implication, it follows that a gift deed is a document that evidences such a transfer and takes effect during the lifetime of the donor. 5.5 The conclusion arrived at by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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