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2015 (3) TMI 489 - AT - Income TaxCapital gains on account of development agreement - whether agreement entered into by the assessee with M/s Amsri Developers Pvt. Ltd. on 04/05/2007 did not arise in AY 2008-09? - CIT(A) deleted addition - Held that:- Unless there is willingness on the part of the developer to perform his part of the contract, there cannot be a ‘transfer’ of capital asset as envisaged u/s 2(47)(v) read with section 53A of the TP Act. Though the assessee had entered into the development agreement in the previous year relating to the AY under dispute, but, as the developer has neither performed nor is willing to perform his part of the contract, the development agreement fails. Even as on date there is no development activity by the developer. The conversion of the land from agricultural to non-agricultural has also not taken place. For this very reason the assessee along with land owners have filed a suit in the city civil court for cancellation of the development agreement, which is pending. In these circumstances, it cannot be said that there is transfer of property giving rise to capital gain. - Accordingly,as relying on case of Bhavya Constructions Pvt. Ltd. and others [2015 (4) TMI 295 - ITAT HYDERABAD] we uphold the order of the CIT(A) and dismiss the grounds raised by the revenue in this regard. - Decided against revenue.
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