Assessee did hand over possession therefore, stand of AO that capital gains did arise during year under consideration as agreement was entered on 12-05-2008 was justified. Accordingly, issue of bringing to tax capital gains during the year was to be upheld. Whether land was short term capital asset or long term capital asset and value for considering capital gains computation was restored to file of AO for fresh examination. In case property was held to be long term capital asset, assessee may be eligible for consequent benefit u/s 54/54F, which should be considered on facts of case. Matter remanded. (AY. 2009-10)
K. Vijaya Lakshmi v. ACIT (2018) 167 DTR 270 / 169 ITD 597 / 195 TTJ 114 (SMC) (Hyd.) (Trib.) Sireesha N. (Smt.) v. ACIT (2018) 167 DTR 270 / 169 ITD 597 / 195 TTJ 114 (Hyd.)(Trib.)
S. 45 : Capital gains—Transfer—Development agreement-Under a development agreement, assessee authorizes developer for construction of apartments, it can be said that assessee has handed over possession of its plot to developer and, thus, the same constitutes transfer and same is taxable as capital gain in year in which agreement was entered into- Reassessment is held to be valid – Matter remanded. [S. 2(47), 54F, 147, 148]