Short-term capital gains under a joint development arrangement were confined to actual receipt, not the full stated consideration.

Short-term capital gains arising from a joint development arrangement were required to be recomputed only on the amount actually received by the assessee, because the appellate authority had followed the binding jurisdictional High Court decision on identical facts. The Tribunal found no infirmity in that approach and rejected the Revenue's broader computation based on the full consideration stated in the arrangement, including alleged cash and kind. The issue was therefore decided in favour of the assessee and against the Revenue, with gain confined to the real receipt rather than the notional full consideration.

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Issues: Whether the Assessing Officer was justified in computing short-term capital gains on the entire consideration stated in the joint development arrangement, or whether the gain was to be recomputed only on the amount actually received by the assessee.

Analysis: The appellate authority had followed the binding decision of the jurisdictional High Court on identical facts and directed recomputation of short-term capital gain only on the amount actually received. The Revenue's challenge did not dislodge that basis, and the Tribunal found no infirmity in the appellate order. As the issue stood covered by the higher court's decision, there was no reason to adopt the Revenue's broader computation based on alleged transfer of the entire property for all consideration, cash and kind.

Conclusion: The issue was decided against the Revenue and in favour of the assessee; capital gains were to be recomputed only on the amount actually received.

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