COMMISSIONER OF INCOME TAX Vs. C. SUGUMARAN

JUDGEMENT

(1.) This Tax Case (Appeal) is filed by the Revenue as against the order of the Income Tax Appellate Tribunal raising the following substantial questions of law: "i) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee could not be treated as owner of the property sold on 23.10.2008 while computing capital gains in his hands?

(2.) Whether the Tribunal was legally justified in not taking cognizant of the letter of the seller of the property to M.Viswanathan to the effect that he had received a sum of Rs.25 lakhs for executing a power of attornery on 01.09.2006 in favour of the assessee?

(3.) Whether the finding of the Tribunal is correct especially when Section 2(47)(vi) of the Incometax Act brings within its ambit of the transfer, enjoyment of the property right through power of attorney agreements - 2. The assessment in this case relates to the assessment year 2009 -10. The assessee is an individual. He is a power agent of one Mr.M.Viswanathan, who is the actual owner and vendor of the property. The said Viswanathan entered into a registered power of attorney on 01.09.2006 in favour of the assessee without any consideration. For deciding this case, the relevant clauses in the power of attorney agreement, as extracted by the Tribunal, reads as follows: