The ITAT remanded the matter to the Jurisdictional AO for...

The ITAT remanded the matter to the Jurisdictional AO for further verification regarding possession and consideration under the development agreement. The Tribunal held that for a capital gains event under sections 2(47) and 45, both transfer of possession and receipt of consideration must be established. Since the assessee and co-owners still physically possess the property and no construction or consideration transfer has been demonstrated, the Tribunal found the addition for long-term capital gains premature. The AO was directed to conduct an inspection or obtain a remand report to ascertain possession status and payment of consideration. If possession remains with the assessee and no consideration was passed, no capital gains addition shall be made. Conversely, if facts prove otherwise, the AO shall decide per law after affording the assessee a fair hearing. The appeal was allowed for statistical purposes.

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