Assessee entered into a Joint Development Agreement (JDA) dated 16-12-2013 with a developer for the development of its land. As per the terms of JDA, assessee would introduce land on which developer would develop and construct a building and it was agreed that assessee would be entitled to 47.5 per cent of share of constructed area and developer would be entitled to 52.5 per cent of the constructed area. Assessee sold flats constructed on land and declared capital gain on same. Assessing Officer held that flats sold by assessee were received by assessee on account of development agreement entered into by it with developer\u00a0 hence there was a transfer of capital asset in favour of developer as assessee was entitled to 47.5 per cent of total constructed area, whereas developer would be entitled to 52.5 per cent of constructed area out of total built up area of project. Accordingly, he reopened the assessment by issuing a notice under section 148 and assessed capital gain. On appeal, CIT(A) held that there was no transfer of immovable property in terms of section 2(47)(v) as there was no transfer of possession of land and ownership in favour of the developer vide said joint development agreement. On appeal, the Tribunal held that the parties had specifically expressed their intentions in JDA that the developer was allowed to enter into the property only for the purpose of development work, and nothing therein shall be construed as parting with possession of scheduled property by the owner. It was also specifically stated that nothing contained in said agreement shall be construed as delivery of possession of land in part performance or any agreement of sale under section 53A. Accordingly that JDA was not an agreement to sell so as to invoke provisions of section 53A and consequently deemed a transfer in terms of section 2(47)(v). Accordingly, the deletion of the addition by the CIT(A) was affirmed.\u00a0 (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45: Capital gains-Transfer-Joint development agreement (JDA-Developer was allowed to enter into property only for development work, and nothing therein shall be construed as parting with possession of the scheduled property by the owner-original title deed of land remained with the assessee-JDA was not an agreement to sell so as to invoke provisions of section 53A and consequently deemed transfer in terms of section 2(47)(v)-Order of CIT(A) deleting the addition was affirmed. [S. 2(47)(v), 45, 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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61377","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fXX","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61377","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=61377"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61377\/revisions"}],"predecessor-version":[{"id":61378,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61377\/revisions\/61378"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}