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2018 (5) TMI 1641 - ITAT HYDERABADAccrual of capital gain - year of assessment - assessee as co owner - assessee contesting that refundable deposit is not part of sale consideration and when sale consideration has taken up for computation of capital gains, deposit does not get taxed separately - Held that:- Both the development agreements entered into by assessee and other co-owners did not envisage handing over of the physical possession of the land until the approvals of the building plans and one agreement M/s. Siri Lakshmi Balaji Constructions was even cancelled on 24-09-2012 as the developer failed to proceed with the development activity and no plans were approved by any authority. With reference to agreement with M/s. Siri Balaji Constructions, even though the said concern partly fulfilled the agreement, it could not complete the construction and ultimately land owners and flat owners completed the project and properties were sold by the ‘committee’ as per the orders of the Lok Adalat. In the case of Amiantit International Holding Ltd [2010 (2) TMI 123 - AUTHORITY FOR ADVANCE RULINGS] it was held that "capital gain" cannot arise on the basis of uncertain or indefinite future contingencies or hypothetical and imaginary estimations" Thus the incidence of capital gains does not accrue or arise in the year under consideration and so the orders of AO and Ld. CIT(A) are liable to be set aside. - Decided in favour of assessee.
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