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2022 (12) TMI 166 - AT - Income TaxRevision u/s 263 - Reopening of assessment u/s 147- capital gain - transaction under JDA - execution of joint development agreement amounts to transfer of the capital asset and therefore, the assessee was liable to pay capital gains tax which is escaped assessment - HELD THAT:- Each and every document which has been produced before the Registration Authority and which is subject to stamp duty cannot be regarded as a transfer deed or conveyance deed. In this case, the stamp duty has been levied in respect of Joint Development Agreement at a fixed rate and the same has not been treated by Registration Authority/Stamp Duty Authority as ‘conveyance deed’ or to say ‘transfer deed’ of the property. Merely, because the JDA has been registered with the registering authority and stamp duty has been paid at applicable rates for JDA, that does not ipso facto attract the provisions of section 43CA of the Income Tax Act especially when neither as per the terms of the JDA the same can be treated as transfer of an asset, nor the registering authority/stamp duty authority has treated the JDA as transfer/conveyance. No profits have been earned by the assessee either actual or hypothetical in this case. AO after examination of the facts and circumstances of the case and considering the reply of the assessee has rightly passed the assessment order, and the same in our view, is neither erroneous nor prejudicial to the interest of revenue. The impugned revision order, being bad in law, is hereby quashed. The appeal of the assessee stands allowed.
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