Suraj Lamp & Industries (P) Ld.Tr.Dir vs State Of Haryana & Anr on 11 October, 2011
property to third party. Therefore, it cannot be considered that the
assessee became the owner of the property by virtue of the
irrevocable GPA. In the relevant previous year, the assessee has
executed the sale deed in favour of his daughter and in the sale
deed it has been mentioned that the total of the sale consideration
of Rs.8,40,000/- was paid in the year 1994. This fact also cannot
be accepted, because if the entire sale consideration was paid in
the year 1994, then the vendors/parties or even the GPA holder
could have executed the sale deed in favour of the vendee in that
year itself. Therefore, the sale is only in the year 2007 but capital
gain would arise in the hands of the owners of the property and
not the GPA holder. The Hon'ble Supreme Court in the case of
Suraj Lamps & Industries Pvt. Ltd vs. State of Haryana reported
in (2012) 340 ITR 2 has held that GPA is not a deed of conveyance
and hence cannot be construed as an instrument of transfer in
regard to any right, title or interest in the immovable property.