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2014 (2) TMI 1393 - AT - Income TaxAddition made under the head ‘capital gains’ - Joint Development agreement taken as ‘sale deed’ - assessee argued merely signing of a tripartite Joint Development Agreement by the Society with M/s. Hash Builders and with M/s. Tata Housing Development Co. Ltd (THDC), did not result into accrual of the alleged capital gain to the assessee - relevant provisions of section 2(47) as also the provisions of section 53A of the Transfer of property Act - HELD THAT:- As decided in SHRISATNAM SINGH KAINTH [2013 (9) TMI 229 - ITAT AMRITSAR] and CHARANJIT SINGH ATWAL [2013 (8) TMI 364 - ITAT CHANDIGARH] When the plots remain unallotted and obviously legal ownership and beneficial ownership belonged to the society. Had the plots been allotted to some members before entering into the JDA then it could have been said that the plots have already been allotted and therefore, the society was not responsible for the same. Once the plots were owned by the assessee obviously the transfer of the same would lead to arising of profit which has to be taxed u/s 45. We are of the opinion that lower authorities have correctly rejected the arguments that income from such plots, if any, should be charged under the head "business profits" because it is a settled law that if an income falls under specific head of income contained in Section 14 under Chapter IV then the same has to be taxed under that head. - Decided against assessee.
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