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TMI Blog2025 (2) TMI 1038X X X X Extracts X X X X X X X X Extracts X X X X ..... iginal development agreement had become infructuous and a fresh agreement was entered into between the parties on 29.08.2017." 03. The facts in brief are that the assessee filed the return of income on 26.09.2013, which was processed u/s 143(1) of the Act on 07.01.2014, declaring income of Rs. 5,00,950/-. The case of the assessee was reopened u/s 147 of the Act by issuing notice u/a 148 on 31.03.2017. The assessee filed the return of income on 17.08.2017, in compliance and thereafter the assessee was supplied the reasons recorded the reopening of assessment. The ld. AO noted that Shri Harjinder Singh Gill has executed a joint development agreement with M/s Monark Dealcom Pvt. ltd. on 25.06.2012, in respect of landed property located at pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same reason and the ld. AO accepted the contention of the assessee that the joint development agreement was not executed and the vendor did not receive the consideration and therefore, the capital gain u/s 50C of the Act did not arise. In the said order, it was also stated that the land was sold to the builder in F.Y. 2017-18 relevant to A.Y. 2018-19 and the capital gain would be offered in that assessment year and therefore, the the question of capital gain does not arise. 05. The ld. DR on the other hand stated that the fact of non execution of joint development agreement was never before the AO and accordingly was not verified by the ld. AO. The ld. DR submitted that in all fairness the appeal may be restored to the AO for the same ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loper M/s MONARK DEALCOM PVT. LTD. agreeing to pay the stakeholders a gross sum of Rs. 4,58,00,000/- out of which Rs. 2,04,50,000/- was paid simultaneously with the execution of the agreement Rs. 1,60,12,000/- paid prior to execution and Rs. 44,38,000/- incurred by the developer towards paying compensation to the tenants. The memo of consideration attached to the sale agreement Rs. 2,04,50,000/- to the vendors confirms the payment of Considering the fact that there was no sale of property involved in the first place when the initial agreement was entered into by the vendors with developer on 25.06.2012 and also the fact that the vendors did not receive anything in cash or in kind from the developer, capital gain u/s 500 did not arise. Sal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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