TMI Blog2024 (12) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... able property and that the transfer under GPA as concluded transfer is not good in law. By taking same principle to the present case in hand, as discussed above, the son of the assessee as Co-Parcener got GPA to deal with the property as per the terms and conditions therein with 3 persons and clause 15 of the said GPA clearly shows that no consideration or possession of the property given to the said Co- Parcener, who is son of the assessee HUF. Therefore, when there is no payment of consideration nor possession was given, it is not a transfer under law. Therefore, the finding of the ld. CIT(A) in confirming the view of the Assessing Officer as concluded transfer is not justified. We note that the Co-Parcener is son of assessee HUF represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2024 passed by the ld. Commissioner of Income Tax (Appeals) Chennai-16, Chennai, for the assessment year 2006-07. 2. We find that this appeal was filed with a delay of one day. The assessee filed a petition for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said petition, we find the reasons stated by the assessee are bonafide, which really prevented the assessee in filing the appeal in time. Thus, the delay of one day is condoned. 3. The assessee raised 4 grounds of appeal amongst which the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the order of the Assessing Officer on account of disallowance made under section 54 of the Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ltgd. V. State of Haryana Anr in SLP (C) No. 13917 of 2009 dated 11.10.2011 and submits that the GPA transaction does not convey any title nor create any interest in an immovable property. He argued that the Hon ble Supreme Court held recognizing or accepting GPA transaction as concluded transfer is not good in law. Further, he argued that immovable property can be legally and lawfully transferred/ conveyed only by registered deed of conveyance. He argued vehemently that entering POA for sale of immovable property does not convey any title and it is not a transfer. Further, he drew our attention to the decision of the Hon ble Supreme Court in the case of Shakeel Ahmed v. Syed Akhlaq Hussain in Civil Appeal No. 1598 of 2023 dated 01.11.202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble High Court of Madras agreeing with the decision of Hon ble High Court of Karnataka which held that the difference of location of the newly purchased residential house(s) will not alter the position for interpretation of the word a residential house to the effect that it may include more than one or plural residential houses. He further submits that the location of newly purchased house(s) by the HUF out of sale consideration received on the sale of capital asset or a residential house in the given circumstances of availability of such residential house as per the requirement of the HUF will not alter the position and interpretation of provisions under section 54 of the Act. 9. Heard both the parties and perused the material available o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the GPA is the Co-Parcener of HUF assessee and therefore, not entitled to claim deduction under section 54 of the Act. The Hon ble Supreme Court in the case of Suraj Lamp Industries Pvt. Ltd. (supra) clearly held that the transaction of GPA does not convey any title nor create any interest in an immovable property and that the transfer under GPA as concluded transfer is not good in law. By taking same principle to the present case in hand, as discussed above, the son of the assessee as Co-Parcener got GPA to deal with the property as per the terms and conditions therein with 3 persons and clause 15 of the said GPA clearly shows that no consideration or possession of the property given to the said Co- Parcener, who is son of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6733 of 2022 and M/s. Paul Rubber Industries Private Limited v. Amit Chand Mitra Anr. In SLP (C) No. 15774 of 2022, held that no title could be transferred with respect to an immovable property on the basis of even registered POA nor any title would confer on the GPA over the property even in respect of having valid GPA. 11. Therefore, we are of the opinion that the findings of the ld. CIT(A) is not justified to hold that the assessee HUF is not entitled to the benefit of deduction under section 54 of the Act as it was a transaction of selling of property between assessee HUF to assessee HUF and thus, following the decision of Hon ble Supreme Court in the case of Suraj Lamp Industries Pvt. Ltd. (supra), we hold that the assessee is entitl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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