https://www.taxtmi.com/caselaws?id=371688 Capital gains under a development agreement arise only when possession is handed over in a manner satisfying section 2(47)(v) of the Income-tax Act read with section 53A of the Transfer of Property Act. Here, the agreement deferred possession until sanction of the building plan, and the effective handing over occurred in assessment year 2008-09, not 2007-08; temporary entry for inspection did not constitute transfer, so the reassessment for 2007-08 lacked a valid basis. The land was also not shown to have been converted into stock in trade, and the transfer deeds related only to proportionate land for the shops under the joint development arrangement. On those facts, business income could not be assessed in 2009-10, and only capital gains, if any, would arise in the relevant year of possession. en-us Wed, 05 Dec 2018 00:00:00 +0530 Sat, 08 Dec 2018 06:38:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=371688 Capital gains under a development agreement arise only when possession is handed over in a manner satisfying section 2(47)(v) of the Income-tax Act read with section 53A of the Transfer of Property Act. Here, the agreement deferred possession until sanction of the building plan, and the effective handing over occurred in assessment year 2008-09, not 2007-08; temporary entry for inspection did not constitute transfer, so the reassessment for 2007-08 lacked a valid basis. The land was also not shown to have been converted into stock in trade, and the transfer deeds related only to proportionate land for the shops under the joint development arrangement. On those facts, business income could not be assessed in 2009-10, and only capital gains, if any, would arise in the relevant year of possession. Case-Laws Income Tax Wed, 05 Dec 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=371688