Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (6) TMI 705 - AT - Income TaxTransfer of development rights - capital gains - held that:- The right under the development agreement, therefore, is merely a contingent right, depending on the grant of licence or approval, as provided for in art. I of the agreement. It is only from the date of grant of licence from the DTCP, the developer would actually be vested with the licence to develop the property. Prior to such development, all approvals as enumerated in art. I of the agreement are to be obtained from DTCP and it is the responsibility of the developer to do so. It is only when the sanctioned plan and the approvals are obtained, that the developer can commence the development on the scheduled property. - Decided in favor of assessee. Disallowance under section 40(a)(ia) - Assessee having appointed a consolidator to acquire land who, as per the terms of MOU, agreed to assign its right to purchase the land in favour of the assessee – Held that:- Vikram Electric Equipment (P) Ltd. was transacting on a principal to principal basis. Provisions of s. 194H of the Act are, therefore, not at all applicable - In favor of assessee. The provisions of s. 40(a)(ia) of the Act in any case do not apply, the assessee having not claimed any deduction for any expenses on account of payment to Vikram Electric Equipment (P) Ltd., either in its P and L a/c or in the computation of taxable income filed.
|