Under a registered joint development agreement, extensive enforceable development, financing, marketing and sale rights, coupled with restrictions on the society's control, constituted a transfer under section 2(47). Capital gains were therefore assessable in the association of persons that held and transferred the property, rather than in its members. Mutuality did not exempt income arising from dealings with an independent developer, and the deferred capital-gains mechanism was unavailable to an association of persons. However, full consideration could not rest solely on a later GST invoice without establishing its nexus to the transfer-date consideration; valuation, GST, amenity charges, forgone area and tax-credit claims required fresh verification. The TOLA extension and faceless assessment procedure remained valid.
Under a registered joint development agreement, extensive enforceable development, financing, marketing and sale rights, coupled with restrictions on the society's control, constituted a transfer under section 2(47). Capital gains were therefore assessable in the association of persons that held and transferred the property, rather than in its members. Mutuality did not exempt income arising from dealings with an independent developer, and the deferred capital-gains mechanism was unavailable to an association of persons. However, full consideration could not rest solely on a later GST invoice without establishing its nexus to the transfer-date consideration; valuation, GST, amenity charges, forgone area and tax-credit claims required fresh verification. The TOLA extension and faceless assessment procedure remained valid.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
