The Assessee  was a co-owner of a residential house property with his father and his wife in the ratio of 42.50, 15 and 42.50 per cent respectively. They entered into a joint development agreement with one developer, who had agreed to construct 4 flats on said property and give a consideration of Rs. 2.25 crores as non-refundable deposit along with 2 flats with car parking in lieu of 50 per cent undivided share (UDS) of said land.  As per an internal agreement between parties, non-refundable deposit was directly paid to assessee’s father and one flat each was allotted and registered in favour of assessee and his wife.  Assessee filed his return of income considering value of only one flat allotted to him as long term capital gain (LTCG). The AO  recomputed  the long term capital gain by considering the cost of two flats plus the non-refundable deposit of Rs. 2. 25 crores from transfer of property as full value of consideration received. considered 42.50 percent of share in hands of the assessee and further allowed deduction for indexed cost of acquisition and deduction under section 54 of the Act. On appeal the CIT(A) up held the order of the Assessing Officer.  On appeal the Tribunal held that when a property was transferred, consideration received or accrued as a result of transfer should be taken into account according to their share in the property and not as per internal arrangement between parties. Since co-owners of the property had a specified share under JDA, a non-refundable deposit received from the developer was also required to be taken in proportionate to their share in property irrespective of their internal arrangement. Accordingly, the full value of consideration was to be determined by considering the cost of two flats plus the non-refundable security deposit received from the developer and accordingly, LTCG was to be computed proportionate to share of parties on said amount. (AY. 2011-12)