RAJBIR SINGH,FARIDABAD vs. INCOME TAX OFFICER, FARIDABAD

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ITA 8930/DEL/2025Status: DisposedITAT Delhi19 August 2026AY 2012-133 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal held that the transfer of land occurred in AY 2011-12 as per the sale deed and possession handover. The mere clearing of post-dated cheques in AY 2012-13 did not trigger the taxable event. Therefore, capital gains should be considered in AY 2011-12.

What were the facts?

The assessee sold land in AY 2011-12, with possession handed over and part sale consideration received in that year. The remaining consideration was received in AY 2012-13 via post-dated cheques. The AO taxed capital gains in AY 2012-13, which was upheld by the CIT(A).

What were the issues?

The primary issue was whether capital gains on the sale of land were taxable in AY 2012-13 or AY 2011-12, considering the timing of the sale deed, possession, and receipt of sale consideration.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A”: NEW DELHI

Before: SHRI M. BALAGANESH & MS. KAVITHA RAJAGOPAL

Hearing: 01.06.2026Pronounced: 19.08.2026

PER M. BALAGANESH, A. M.:

This appeal of the assessee arises out of the order passed by the Commissioner of Income Tax (Appeals) NFAC, Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] in Appeal No. 8930/Del/2025 for A.Y. 2012-13 dated 29.10.2025 which in turn arises out of the order passed by the Assessing Officer, ITO, Ward 2(2) Faridabad (hereinafter referred to as ‘ld. AO’) passed u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 22.11.2019.

2.

Though the Assessee has raised several grounds of appeal, the only effective issue to be decided in this appeal is as to whether the capital gains on sale of land could be brought to tax in assessment year 2012-13 in the facts and circumstances of the instant case. Page | 1

ITA No. 8930/Del/2025 Rajbir Singh 3. We have heard the rival submissions and perused the materials available on record. The Assessee had not filed any income tax returns for the Assessment Years 2011-12 and 2012-13. Notice under Section 148 of the Act stood issued to the Assessee for the Assessment Year 2012-13 on the basis of information received that the Assessee had sold an immovable property of Rs. 2,00,25,000 (assessee share is 1/4th which comes to Rs 55,18,750) during the year under consideration. The part sale consideration of Rs. 50,06,438 was received in Assessment year 2011-12 and balance consideration of Rs. 1,50,18,562 was received in Assessment year 2012-13 (i.e. the year under consideration) through postdated cheques. The Learned AO accordingly completed the assessment by bringing to tax the capital gains (assessee share of 1/4th) arising on sale of land in Assessment year 2012-13 without giving any deduction on account of cost of acquisition of land. This action of the Learned AO was upheld by the Learned CITA.

4.

At the outset, we find that the Assessee had sold the land along with others on 2-2-2011 relevant to Assessment year 2011-12. The registered sale deed in this regard dated 2.2.2011 is enclosed in page 83 of the paper book. On perusal of the sale deed, it is clear that the possession of the land is already handed over to the buyer by the Assessee and other co-owners in Assessment Year 2011-12. The part sale consideration was received in Assessment Year 2011-12 and remaining sale consideration was received in Assessment Year 2012-13. The fact of issuance of post dated cheques was mentioned in the registered sale deed itself. These post dated cheques got cleared in Assessment Year 2012- 13. Hence, it is very clear that the transfer of land had happened in Assessment year 2011-12 by way of registered sale deed and the possession of the land was also handed over in Assessment year 2011-12. Page | 2

ITA No. 8930/Del/2025 Rajbir Singh The only event which had happened in Assessment year 2012-13 (i.e. the year under consideration) was honouring of postdated cheques by the buyer in favour of the seller (assessee herein). Hence, there is absolutely no basis for the taxable event of capital gains to get triggered in Assessment year 2012-13. However, the taxability of capital gains, if any, need to be considered in Assessment Year 2011-12 since the Assessee had not filed any income tax return for the Assessment Year 2011-12 also. We direct the Learned AO accordingly. The Learned AO is also directed to grant deduction of cost of acquisition on verification of cost of acquisition of land if the capital gains on sale of land is found to be liable to tax. The grounds raised by the Assessee are partly allowed in the abovementioned terms. 5. In the result, the appeal of the Assessee is partly allowed.

Order pronounced in the open court on 19/08/2026

Sd/- Sd/- (KAVITHA RAJAGOPAL) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 19/08/2026 *G.P. Sr. PS* Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi

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