2019 (5) TMI 745

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....ssee was a member of Housing Society of MLAs, named as Punjabi Cooperative House Building Society Ltd. Mohali (hereinafter referred to as 'Society'), which was the owner of 21.2 acres of land in Village Kansal, District Mohali. This Society entered into a tripartite joint development agreement (hereinafter referred to as 'agreement') on 27.02.2007 with M/s. Hash Builders (Pvt.) Ltd, Chandigarh and M/s.Tata Housing Development Company Ltd., Mumbai (hereinafter referred to as THDC"), by virtue of which the Society would transfer its land for development in lieu of monetary consideration and also consideration in kind to the members of the society. The assessee was also a member of the said Society, owning 500 sq. yards land. ....

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....he lead case of 'Charan Singh Atwal' reported in (2015) 50 Taxman 359(P&H), the Hon'ble Punjab and Haryana High Court vide order dated 22.07.2015 held that except for the land for which registered sale deed has already been executed, the transaction in question could not be said as 'transfer' of land by the assessee/members of the society to the builder/developer and that in the absence of registration of JDA dated 25.02.2007, the agreement would not fall under Section 53A of the Transfer of Property Act, 1882 and consequently Section 2(47)(v) of the Income Tax Act would not apply and hence capital gains tax was not leviable on accrual basis. However, the capital gains tax would be leviable on the amount received from developer in respect o....

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....he aforesaid JDA/land transfer transaction, the assessment in the case of assessee was reopened by way of issuance of notice u/s 148 of the Income Tax Act. Though, the assessee did not disclose about the transaction and any amount received in respect of the said sale transaction in the original return of income, however, there was option to the assessee to truly declare all the facts and circumstances in the return of income filed pursuant to the notice issued to him under Section 148 of the Act for reopening in the assessment. However, the assessee again has chosen to file the return of income declaring the same income as was shown in the original return of income. The ld. Counsel for the assessee has argued that it was a debatable issue ....