2025 (9) TMI 1616 - AT - Income Tax

Case restored to CIT(A) for fresh hearing after joint development agreement cancellation; decide capital gains by speaking order (A)

ITAT (Patna) set aside the CIT(A)'s order and restored the matter to the file of the CIT(A). The Tribunal noted the joint development agreement was later ... Capital gains earned on execution of joint development agreement - Counsel has submitted that in fact, no transaction has taken place in terms of section 2(24) read with relevant provisions of Transfer of Property Act on the execution of joint development agreement - HELD THAT:- As Counsel submitted that even the said joint development agreement was later on cancelled and no development work was carried out. However, this very fact, which goes to the root of the case has been totally ignored by the CIT(A). Counsel, therefore, has submitted that the matter may be restored to the file of the CIT(A) with a direction to thoroughly go through the factual aspects of the case and then decide the matter in accordance with law. Considering the submissions of Ld. Counsel, the impugned order of the CIT(A) is set aside. Matter is restored to the file of the Ld. CIT(A) with a direction to decide the same afresh after giving due opportunity to the assessee to present his case and considering the documents furnished by him and thereafter to decide the matter in accordance with law by way of a speaking order. Appeal against order dated 11.05.2023 under section 250 (AY 2014-15). Delay of 66 days in filing the appeal was condoned. Lower authorities confirmed an addition treating proceeds as capital gains arising from execution of a joint development agreement (JDA). Assessee contended no transfer occurred within section 2(24) read with relevant provisions of the Transfer of Property Act, the JDA was subsequently cancelled and no development work was carried out; these factual aspects were not considered by the lower authority. The tribunal held that the impugned order 'is set aside. Matter is restored to the file of the Ld. CIT(A) with a direction to decide the same afresh after giving due opportunity to the assessee to present his case and considering the documents furnished by him and thereafter to decide the matter in accordance with law by way of a speaking order.' Appeal treated as allowed for statistical purposes.