The assessee sold some property in F.Y. 2014-15. As consideration of sale, he accepted post dated cheques. The cheques subsequently dishonoured in F.Y. 2015-16. The assessee filed a suit against the purchaser for cancellation of sale agreeemnt which is at present, pending in court.
My query is that whether the assessee can claim that the transcation is void ab initio and escape from capital gain
The transaction is not at all void ab initio since the sale deed is executed and also there is no possibility of sentence in the sale deed that the sale is subject to the realisation of cheque received and all.
However it is arguable during the course of assessment procedure. however the transaction shall not be void ab initio.
Thanks
CA Gokul Raj
The transaction is not at all void ab initio since the sale deed is executed and also there is no possibility of sentence in the sale deed that the sale is subject to the realisation of cheque received and all.
However it is arguable during the course of assessment procedure. however the transaction shall not be void ab initio.
Thanks
CA Gokul Raj
Chirag N Shah & Associates
Mumbai
CA Inter
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