2022 (6) TMI 1369

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....mstances of the case, the Ld. C1T(A) has erred in law and facts in deleting the addition of Rs. 12,27,36,985/- made by the AO by holding that no capital asset was transferred by the assessee. 3. On the facts and in the circumstances of the case, the Ld. CIT (A) has erred in law and facts in inferring that no property is transferred to M/s. Unitech Ltd. but it was only a symbolic possession of a land for specific purposes. 4. On the facts and in the circumstances of the case, the Ld. CIT (A) has erred in law and facts in inferring that the agreement entered into with M/s Unitech was without consideration, inspite of the fact that the assessee has taken advances of Rs. 24 Crores form the collaborator without any interest aga....

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....hat capital gains accrued to the assessee on account of the conversion of the land from fixed assets to stock in trade and invoking the provisions of section 45 (2) of the Act. The AO was convinced that a transfer of capital assets has taken place as per agreement Unitech has also been given the right to develop, design and maintain a retail Mall of 2 lac square feet on revenue sharing basis with assessee and it has been given sole and exclusive responsibility of the project including the Golf Cottages and complete operational freedom for all these, assessee would be paid a certain amount of money according to Revenue sharing formula appended to the agreement. 6. The AO was of the further belief that exclusive rights that the assessee en....

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....revious year relevant to the assessment year under consideration which can transpire the proposition of otherwise transferred of the land in stock in trade and become taxable as long term capital gain u/s.45 (2) of the Act and went on to delete the impugned addition. 9. We have carefully perused the orders of the authorities below. The undisputed fact is that nothing has happened during the year under consideration, the impugned land was converted into stock in trade in earlier assessment year. It is not in dispute that the agreement between the assessee and Unitech is not an agreement for sale and it is not in dispute that there is no consideration. In our opinion where assessee converted his land into stock in trade and thereafter a de....