Assessee cannot claim exemption of LTCG based on unregistered Banakhat agreement
Last updated: 22 February 2023
Court :
ITAT, Ahmedabad
Brief :
The ITAT, Ahmedabad in Shri Navghanbhai Laxman Rabari v. ITO[ITA No.1864/AHD/2019 dated January 18, 2023] has held that, the transfer of property only takes place when either the possession of the property is transferred or sale deed is executed and the documents like unregistered 'Banakhat' or power of attorney are not the substitute of sale deed. Further, held that, the sale of land within 36 months from the date of purchase will lead to a Short Term Capital Gain ("STCG"), and therefore exemption under Section 54F of the Income Tax Act, 1961 ("the IT Act") will not be available.
Citation :
ITA No.1864/AHD/2019 dated January 18, 2023
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Bimal Jain
Published in Income Tax
Views : 184
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