1.The assessee is an individual engaged in the business of real estate dealings as well as in real estate consultancy. Assessee is also a partner in various partnership firms from which he derives exempt income and also has agricultural income.<\/p>\n
2.The assessee had filed his return of income for A.Y. 2016-17 on 01.02.2017 disclosing total income at Rs. Nil. Assessee was holding land\u00a0 as capital asset\u00a0 jointly with his wife and son. purchase in the year 1990.<\/p>\n
3.. During \u00a0the \u00a0year \u00a0under consideration, the assessee had entered into development agreement with Developer , for development of the said land vide registered agreement . In consideration of land given for development, Developer\u00a0 agreed to give the appellant constructed area in the proposed scheme to be undertaken on the said piece of land but due to some internal problems, few of the terms of the said development agreement were not complied and thus possession of the said land was not given to developer . As the possession of land was not given to the developer, transfer had not taken place within the meaning of Sec. 45 of The Income Tax Act, 1961 and therefore no capital gain is offered to tax.\u00a0 as on today also the possesseion of the plot is with the assessee and no development on the same has been carried out.<\/p>\n
4.The Ld AO has made the addition mainly on the ground that assessee is liable for capital gain under section 45(1) of the Act in view of development agreement executed between assessee and developer instead of Joint Development and accordingly considering the assessee\u2019s share as 1\/3rd, <\/sup>made addition of as Long-Term Capital Gain.<\/p>\n Is AO is correct.<\/p>\n Pl guide<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[802,24],"class_list":["post-33670","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-agreement","qa_tag-capital-gains"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/33670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=33670"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=33670"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=33670"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=33670"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=33670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}