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2014 (8) TMI 1176 - KARNATAKA HIGH COURTYear of taxability of capital gain - when the development agreement was entered or when the built up area was completed and handed over to the assessee - handing over possession is relevant for capital gain tax - HELD THAT:- In the case of Commissioner Vs. D.K.Dayal [2012 (6) TMI 405 - KARNATAKA HIGH COURT], after noticing the case law on the point, has held that the date on which possession was handed over to the developer is relevant and therefore, the capital gain tax is payable for the assessment year in which the possession was handed over in terms of the joint development agreement. Therefore, on mere entering into a joint development agreement there is no transfer. The “transfer” in the Income Tax Act takes places on the date the possession of the property is delivered though not a registered document is executed conveying the title. In the instant case, the authorities have held that the capital gain tax is payable in the assessment year 1995-96 when the joint development agreement was entered into by the assessee with the developer for transfer of 66% interest in an undivided immovable property and possession of the land was handed over and not when the built up area was completed and handed over to the assessee in the assessment year 1998-99. Hence, we answer the substantial question of law raised in favour of the assessee
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