Assessee had entered into an agreement to sell a property to MAPL. Though the possession was handed over the Capital gain was not offered for taxation on the ground that, subsequent termination of contract by mutual consent and returned back the sale consideration received. Tribunal deleted the addition . On appeal by the Revenue the Tribunal held that assessee is Liable to capital gains tax in the year of handing over of possession of property . (Referred Balbir Singh Maini (2017) 398 ITR 531 (SC)).(AY. 1999-2000)
CIT v. Harbour View (2018) 409 ITR 599 / (2019) 261 Taxman 330 (Ker.)(HC)Editorial: Harbour View v. CIT (2023) 295 Taxman 405 (SC) ,Assessee availed the benefit of the tax scheme ( Vivad se Vishwas Scheme . SLP dismissed .
S. 45: Capital gains- Transfer – Possession was handed over –Subsequent termination of contract by mutual consent and returned back the sale consideration received- Liable to capital gains tax in the year of handing over of possession of property [ S.2(47)( v), Transfer of Property Act,1929, S.53A,Registation Act 1908, 17(1A) ]