Assessing Officer held that amount which was kept in escrow account would only constitute an application of its income and whole consideration had to be deemed to accrue to assessee on execution of agreement for sale. Accordingly, capital gain was recomputed. Order of the Assessing Officer was affirmed by the Tribunal. On appeal the Court affirmed the order of Tribunal. (AY. 2003-04)
Caborandum Universal Ltd. v. ACIT (2021) 283 Taxman 312 (Mad.)(HC)
S. 48 : Capital gains-Computation-Full value of consideration-Retention of money in Escrow account-Possession was handed over-Amount of money in Escrow account has to be considered while computing the capital gain for the purpose of full consideration. [S. 45]