{"id":13364,"date":"2020-10-30T02:11:42","date_gmt":"2020-10-30T02:11:42","guid":{"rendered":"https:\/\/itatonline.org\/digest\/network-construction-company-v-acit-2020119-taxmann-com-186-mum-trib-www-itatonline-org\/"},"modified":"2021-04-25T17:48:46","modified_gmt":"2021-04-25T12:18:46","slug":"network-construction-company-v-acit-2020119-taxmann-com-186-mum-trib-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/network-construction-company-v-acit-2020119-taxmann-com-186-mum-trib-www-itatonline-org\/","title":{"rendered":"Network Construction Company v .ACIT ( 2020) 185 ITD 318  \/119 taxmann.com 186\/  (2021) 209 TTJ 900\/197 DTR 433  ( Mum) (Trib ) www.itatonline.org"},"content":{"rendered":"<p>Where the assessee purchased development rights, entered into a Joint Venture agreement, and agreed to contribute the said development right as \u2018capital contribution\u2019 at an agreed consideration to the AOP. The Assessing Officer while framing assessment treated transfer of the development rights under Section 50C of the Act.<br \/>The Tribunal held that the introduction of development rights by way of capital contribution under section 45(3) of the Act by the assessee is even though a transfer but it is not a sale because there neither any receipt nor any accrual of any consideration, as held by the Hon\u2019ble Supreme Court in the case of Sunil Siddharthbhai Vs. CIT (1985) 156 ITR 509 (SC). Further this Tribunal case of Voltas Ltd Vs. ITO [2016] 74 taxmann.com 99 (Mumbai), wherein it is held that the provisions of section 50C of the Act could not be applied to sale development rights of land owned by the assessee. Therefore, the provisions of section 50C of the Act are not applicable in the instant case and provision of section 45(3) of the Act will be applied. Followed\u00a0 <strong>\u00a0<\/strong>Shri Sarrangan Ashok v ITO, ITA No. 544\/Chny\/2019 dated 19.08.2019 for assessment year 2015-16 ACIT vs Moti Ramanand Sagar, ITA No. 2049\/Mum\/2017 dated 28.02.2019 for assessment year 2012-13; and,\u00a0 DCIT vs Amartara Pvt. Ltd., ITA No. 6050\/Mum\/2016 dated 29.12.2017 for assessment year 2012-13.\u201d\u00a0 Voltas Ltd v . ITO [2016] 74 taxmann.com 99 161 ITD 199 (Mum) (Trib)\u00a0\u00a0 (\u00a0 CIT v Carlton Hotels Pvt. Ltd \u00a0( 2017) 399 ITR 161 ( All) (HC) is distinguished )\u00a0 ITA No. 2279\/MUM\/2017\u00a0 dt 11-8 -2020 ( AY. 2012 -13)<\/p>\n<p>\u00a0<\/p>\n<p><a href=\"https:\/\/itatonline.org\/digest\/wp-content\/uploads\/2020\/10\/Network-Construction.pdf\">https:\/\/itatonline.org\/digest\/wp-content\/uploads\/2020\/10\/Network-Construction.pdf<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 45(3) : Capital gains &#8211; Transfer of capital asset to firm \u2013 AOP \u2013  I Introduction of development rights by way of capital contribution-  Even though a transfer but it is not a sale because there neither any receipt nor any accrual of any consideration-  Provisions of section 50C of the Act could not be applied to sale development rights \u2013 When there is inconsistency in special provision and general provision \u2013 Special provision will prevail .[ S.50C ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13364","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3ty","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13364"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13364\/revisions"}],"predecessor-version":[{"id":17253,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13364\/revisions\/17253"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}