Mr. A executed a sale deed of land in favour of Mr. B in AY 2009-10 . Mr. A contended in court that there was no transaction and claimed no consideration was paid to him (alleged tobe paid Rs. 2.00 lacs in cash) and the sale deed was got executed by fraud moreove no possession was handed over to the buyer. It was also proved in the court The Court directed cancellation of the sale deed , the date of decision happened in AY 2011-12.
can AO charge capital gain on the transaction treating the transaction as transfer despite the orders of the court of law cancelling the transaction ab-initio.
or alternatively Mr. A has to declare capital gain in the year of transaction and later on claim of capital loss in the year of decision of the court.
Need opinions with substance.
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