| COURT: | ITAT Lucknow |
| CORAM: | A. K. Garodia (AM), Sunil Kumar Yadav (JM) |
| SECTION(S): | 2(47)(v) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Development agreement, transfer |
| COUNSEL: | Yogesh Agrawal |
| DATE: | June 23, 2015 (Date of pronouncement) |
| DATE: | July 8, 2015 (Date of publication) |
| AY: | 2009-10 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 2(47)(v): Even if possession is handed over to the developer, there is no "transfer" if the developer has only paid an interest-free advance to the assessee to meet expenses | |
The provisions of section 2(47)(v) of the Act can only be invoked where absolute possession of capital asset was given to the buyer against certain consideration, but in the instant case no consideration was ever fixed for handing over the possession to the developer and whatever amount was received it was received as interest free advance to meet the expenses to be incurred in discharging certain responsibilities agreed upon in this agreement. Therefore, from any angle there is no transfer of asset as per provisions of section 2(47) of the Act and capital gain would only be chargeable in the years in which stock-in-trade would be sold
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