Assessee, a Non-Resident Indian entered into a development agreement with a builder for constructing residential flats on a sharing basis. Tribunal held that development agreement as a transfer under section 2(47) hence liable for capital gains. On appeal the Court held that\u00a0 from records that despite existence of a contract to transfer immovable property, signed by both parties, contract remained unexecuted for consideration. A\u00a0 refundable performance guarantee mentioned in development agreement was not paid as consideration for transaction and possession was handed over to developer solely for development work, not as contemplated under section 53A of Transfer of Property Act, 1882.\u00a0 Therefore\u00a0 it could be said that transaction\u00a0 did not fall within definition of transfer under section 2(47), hence the order of the Tribunal is set aside. Referred, \u00a0Shrimant Shamrao Suryavanshi\u00a0v.\u00a0Prahlad Bhariroba Suravanshi\u00a0(2002) 3 SCC 676. (AY. 1997-98)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45 : Capital gains-Development agreement with a builder for constructing residential flats on a sharing basis-Transfer-[S. 2(47)(v), Transfer of Property Act, 1882, S.53A] <\/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-55919","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-exV","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55919","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=55919"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55919\/revisions"}],"predecessor-version":[{"id":58591,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55919\/revisions\/58591"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=55919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=55919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=55919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}