2017 (9) TMI 1647 - ITAT CUTTACK

Computing long term capital gain tax - assessment on the date on which the development agreement was entered into with the promoter OR the date on which the land and the title therein was actually transferred - transfer of property - absence of registered joint development agreement - Held that:- It is not in dispute in the instant case that the joint development agreement dated 9.9.2008 entered by the assessee with Shri Jitendra Hans is not registered.

In view of the above decision in the case of C.S. Atwal vs. CIT, Ludhiana [2015 (7) TMI 878 - PUNJAB & HARYANA HIGH COURT] in absence of registered joint development agreement, the agreement does not fall under section 53A of the 1882 Act and consequently, section 2(47)(v) does not apply. Hence, there is no transfer of land by the assessee during the year under consideration and consequently, the assessee is not liable to capital gains tax. Hence, we set aside the orders of lower authorities an delete the addition under the head “ long term capital gains ” and allow the appeal of the assessee.