Dismissing the appeal of the Revenue the Tribunal held that\u00a0 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\u00a0 to execute sale agreement to a developer does not amount to granting possession u\/s 53A of the Transfer of\u00a0 Property Act . Seshasaayee Steel Pvt Ltd\u00a0 v. ACIT\u00a0 2020] 275 Taxman 187 \/\u00a0 421 ITR 46 (SC) \u00a0Possession of land has been handed over to the prospective buyers consequent to the conveyance in favour of co -operative\u00a0 society of flat owners , the assessee is regularly and\u00a0 consistently following completed contract method , in the case of the developer also , the completed contact method has been accepted by the Revenue . \u00a0( TS-648 -ITAT 2022 (Mumbai) dt . 12 -8 -2022 )( AY. 2006 -07, 2008 -09 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 145 : Method of accounting \u2013Project competition method – Development agreement \u2013 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 ] \t<\/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-30633","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7Y5","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30633","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=30633"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30633\/revisions"}],"predecessor-version":[{"id":30634,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/30633\/revisions\/30634"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=30633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=30633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=30633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}