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2020 (11) TMI 444 - AT - Income TaxCapital gain - Joint Development Agreement entered - transfer of the land u/s 2(47) - as per AO by virtue of the agreement both the assessee had transferred their immovable property as per the provisions of section 2(47)(v) of the Act r.w.s 53A of Transfer of Property Act - HELD THAT:- Apart from the execution of the development agreement, it appears that no other activities were pursued by the Developer till date such as obtaining the plan sanction, development of the land etc. As extremely doubtful regarding the legal validity of the development agreement between both the assessee and the Developer. In this situation, we are of the considered view that the decision of the CIT (A) in the case of both the assessee are appropriate. Hence, we do not find it necessary to interfere with the decision of the CIT (A) in the case of both the assessee. Therefore, the appeals of the Revenue are devoid of merits. In the case of Joint Development agreement it should be construed that the land owner had entered into business venture by introducing his landed property into the business, accordingly the provisions of Section 45(2) will come into operation and the LTCG shall be chargeable to income tax as his income of the previous year in which the land is transferred, and for the purpose of section 48 of the Act, the fair market value of the land on the dated of introducing the land in the Joint Venture shall be deemed to be the full value of the consideration received or accrued as a result of the transfer of the land.
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