Capital gain
SURENDRA KUMAR
(Querist) 07 November 2012
This query is : Resolved
It is capital gain arrise, Only part payment has been received as an advance, which has been reflected in the Books of Accounts. An agreement with M/s ABC Pvt. Ltd. for sale of property and the Hon’able Bombay High Court has ordered, the possession shall not be handed over without leave of the Court.
In this case capital gain arrises
I request your honour to pls send us the reply with concern (Case Law)
Regards
C. P. CHUGH
(Expert) 02 December 2012
Capital Gains arise only when transfer of property is complete within the meaning of Sec 2(47) of the Act. Since neither any Sale Deed has been registered, nor Full payment in terms of Sale Agreement has been received together with transfer of possession, Sales cannot be said to be complete giving rise to any kind of Capital Gain.
