https://www.taxtmi.com/caselaws?id=447577 The ITAT Kolkata ruled in favor of the assessee regarding capital gains computation under a joint development agreement (JDA). The AO had computed short-term capital gain using stamp valuation authority rates, treating the JDA as a deemed sale under section 2(47)(v). The tribunal held that mere execution of JDA without transferring possession to the builder does not constitute transfer of land under section 2(47)(v). Since the assessee only permitted construction after obtaining approvals and no actual construction occurred due to legal hurdles, no capital gains liability arose. The appeal was allowed. en-us Tue, 26 Dec 2023 00:00:00 +0530 Sat, 30 Dec 2023 09:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447577 The ITAT Kolkata ruled in favor of the assessee regarding capital gains computation under a joint development agreement (JDA). The AO had computed short-term capital gain using stamp valuation authority rates, treating the JDA as a deemed sale under section 2(47)(v). The tribunal held that mere execution of JDA without transferring possession to the builder does not constitute transfer of land under section 2(47)(v). Since the assessee only permitted construction after obtaining approvals and no actual construction occurred due to legal hurdles, no capital gains liability arose. The appeal was allowed. Case-Laws Income Tax Tue, 26 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447577