2021 (5) TMI 336

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....ansfer u/s 2(47(v) of the IT Act. 3. Brief facts of the case are that the assessee did not file the return of income for the AY 2007-08.The AO having received the information with regard to transfer of property through Sale cum development agreement-cum-GPA with M/s 21st Century Investments & Properties Ld.. vide document No. 5126/2007, dated 26/03/2007 issued the notice u/s 148on 29/03/2014 and in response to which, the assessee filed the return of income on 23/02/2015 admitting the total income of Rs. 74,380/- from other sources and agricultural income of Rs. 1,65,340/-. The case was taken up for scrutiny and details were called for. As per the information received by the AO, the assessee had entered into development agreement-cum-GPA ....

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....Rs. 42,97,690 Market value of the built up area assigned to the assessee as per the development agreement (i.e. sale consideration in lieu of transfer of land)   Total value of the land admeasuring 1815 sq.yds. 16,42,310/- Less: Value of land admeausring500 sq.yds. retained by the assessee as per development agreement cum GPA 4,52,427 Value of land admeasuring 1315 sq.yds transferred to the developer 11,89,883/- The short term capital gains is worked out as under: Sale consideration Rs. 16,27,912/- Less: Cost of land sold. Rs. 11,89,883/- STCG Rs. 4,38,029/- 3.1. Against the order of the AO, the assessee preferred an appeal before the CIT(A) and the Ld. CIT(A) dismissed the appeal of the ....

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.... that since the assessee has entered into development agreement and given possession of the land to the developer, the capital gains gets attracted, as decided by the Hon'ble Jurisdictional High Court in the case of Potla Nageswara Rao Vs. DCIT,( ITTA No. 245 OF 2014 Dated 09-04-2014) capital gains required to be brought to tax. 6. We have heard both the parties and perused the material on record. In the instant case, the assessee has entered into development agreement for construction of duplex houses and assessee was to receive the constructed area of 5000 sq.ft by virtue of development agreement. However, after entering into agreement, the developer has vanished and no real development took place till date as verified and confirmed by....