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2012 (12) TMI 520 - ITAT HYDERABADChargeability to Capital Gain Tax - Valaution - nature to two different transaction - land development agreement as well as sale of developed land - Conversion of Agricultural land into Housing Plots - held that:- When the Assessing Officer himself has treated two agreements entered into by the assessee as two distinct and separate transactions, he was not correct in taking the indexed cost of acquisition, the purchase value of the land in 1980 and 1989. While computing capital gains arising out of transfer of 15% interest in developed land to M/s Koncept Nirman Pvt. Limited in April, 2006. In our view, the CIT (A) was right in holding that the cost of 15% of the right in developed land should be taken to be the value on which the SRO has calculated stamp duty of Rs.5,41,675/- The asset sold by the assessee to M/s Koncept Nirman Pvt. Limited is not the same which was given to the developer under the development agreement. Once the agricultural land was transferred to the developer under the development agreement, it lost its character as agricultural land. It is also evident from the materials on record that the intention of the parties was never to carry on any agricultural activity but to develop the land to residential/saleable plots. The nature and character of the land has also been changed from agricultural to residential by the order passed by the HUDA in its G.O. Ms. No.810 dated 21-9-2005 prior to the sale of 15% right and interest to M/s Koncept Nirman Pvt. Limited in April, 2006. That apart the assessee himself in the written submissions has submitted that no agricultural activity has taken place from the assessment year 2000-01 to 2005-06. On consideration of these facts, it cannot be said that the capital asset sold to M/s. Koncept Nirman Pvt. Limited in April, 2006 under the sale deed is the same as the land which was given for development under the development agreement and therefore not chargeable to capital gains tax. All the appeals by the Revenue as well as Cross Objections filed by the assessee are dismissed.
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