Dismissing the appeal of the Revenue the Tribunal held that since the land in question was treated as stock -in trade by the assessee in its books of account , transfer of the same cannot be assessed as capital gains , executing a development agreement granting permission to start advertising , selling and construction and permitting to execute sale agreement to a developer does not amount to granting possession u/s 53A of the Transfer of Property Act . Seshasaayee Steel Pvt Ltd v. ACIT 2020] 275 Taxman 187 / 421 ITR 46 (SC) Possession of land has been handed over to the prospective buyers consequent to the conveyance in favour of co -operative society of flat owners , the assessee is regularly and consistently following completed contract method , in the case of the developer also , the completed contact method has been accepted by the Revenue . ( TS-648 -ITAT 2022 (Mumbai) dt . 12 -8 -2022 )( AY. 2006 -07, 2008 -09 )
ACIT v. Suratchandra B. Thakkar (HUF) (2022) BCAJ -October -P. 56 (Mum )( Trib)
S. 145 : Method of accounting –Project competition method – Development agreement – Stock in trade – Advances received by an assessee landlord who has converted land in to stock in trade , following project completion method are not taxable on receipt basis [ S. 4 , 28(i), 45 ]