Section 2(47) : No Transfer. if power of attorney executed without any consideration

No transfer of property under income-tax Act on execution of power of attorney without any consideration

[2015] 57 taxmann.com 20 (Madras)

HIGH COURT OF MADRAS

Commissioner of Income-tax, Chennai

v.

C. Sugumaran

Section 2(47) of the Income-tax Act, 1961 - Capital gains - Transfer (Immovable property/Power of attorney) - Assessment year 2009-10 - One 'V', who was actual owner and vendor of property, executed a registered power of attorney in favour of assessee without any consideration - Thereafter, property was registered in name of assessee's wife for certain sum by a sale deed - Assessing Officer computed capital gains in hands of assessee - Whether there was no transfer or enabling enjoyment of property in favour of assessee in any manner and, therefore, sub-clause (vi) of section 2(47) was not attracted - Held, yes - Whether, therefore, assessee could not be treated as owner of said property for computing capital gains in his hands - Held, yes [Para 11] [In favour of assessee]

Circulars and Notifications : Circular No. 495 dated 22-9-1987