Assessee, a public charitable trust, entered into an agreement in 1994 with a builder, Buildforce to sell a property and as per MOU, symbolic possession was given to Buildforce. Certain dispute arose between Buildforce and assessee and a suit came to be filed which was settled and under which assessee agreed to accept a certain sum in full and final settlement and transfer property in favour of nominee of Buildforce and sale proceeds were invested with nationalised bank and assessee claimed that no capital gain was to be assessed in hands of assessee in view of provisions of section 11(1A). Assessing Officer did not accept this stand of assessee because, according to him, assessee entered into an agreement with Buildforce in 1994 and sale deed was executed in favour of its nominee after a period of almost 12 years and since in this intervening period of 12 years, possession of property was with Buildforce as per MOU, assessee was not in possession, it could not be held that property was being held under trust wholly for charitable or religious purposes and, thus, assessee had not fulfilled requirement of section 11(1A). CIT(A) allowed the claim. Tribunal affirmed the order of the CIT(A). On appeal the Court held that   once legal possession had been handed over by assessee only in 2008-09 then it was to be presumed and accepted that said capital asset was held by assessee trust wholly for charitable purposes till date of its sale and thus, assessee was entitled to claim benefit under section 11(1A). (AY. 2008-09).