TaxTMI 
TaxTMI 
2026 (7) TMI 1306
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....preciating that the assessee had not transferred the subject property on 16.02.2018 but had only entered into a Joint Development Agreement with M/s Ajmera Percept Realty for development of land. 3. The Ld CIT(A) erred in not appreciating that the assessee had neither handed over the possession of the property to M/s Ajmera Percept Realty nor had he received any consideration from the developer and the amount of Rs. 10,00,00,000/- received was interest free refundable security deposit. 4. The Ld CIT(A) erred in not appreciating that the amount of Rs. 14,33,25,000/- was neither received nor accrued to the assessee during the AY 2018-19 and this amount was not income of the assessee liable to income tax in the AY 2018-19. 5. Without prejudice to Ground Nos. 1, 2, 3 and 4, the Ld CIT(A) erred in not appreciating that income to the assessee was liable to tax in the year in which certificate of completion of project or part of the project was issued by the Competent Authority. 6. The above grounds of appeal are without prejudice to one another. 7. The appellant craves leave to furnish Additional Evidence which may be relevant to the above Gro....
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....0/- reported in Form No. 26AS which relates to the transaction of Joint Development Agreement between the assessee and M/s. Ajmera Percept Realty needs to be recognised during the year under consideration and accordingly made the addition thereof and assessed income at Rs. 15,08,99,380/-. 5. Aggrieved assessee preferred appeal before ld.CIT(A) and partly succeeded as the issue relating to addition for long term capital gain was remitted back to the file of Assessing Officer since the assessee did not submit necessary details regarding the cost of improvement. As regards the addition of Rs. 14,33,25,000/- ld.CIT(A) observed that the assessee failed to rebut the finding given by the Assessing Officer in the assessment order by furnishing necessary clarification with supporting evidences. Ld.CIT(A) further held that appellant has alienated right in property in favour of the buyer by entering into Joint Development Agreement and that the appellant has also received part consideration and has also given possession of the land for development. Therefore, transfer has taken place during the current year only. Ld.CIT(A) also placed reliance on various decisions and did not accept the co....
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....arried out without giving possession and therefore ld.CIT(A) has rightly held that the amount reported in Form No. 26AS at Rs. 14,33,25,000/- on account of Joint Development Agreement between assessee and M/s. Ajmera Percept Realty deserves to be taxed subject to allowing of deduction for cost of purchase of land. 9. We have heard the rival contentions and perused the record placed before us. The only grievance of the assessee is that ld.CIT(A) erred in confirming the action of Assessing Officer that income of Rs. 14,33,25,000/- had accrued to the assessee on account of registration of Joint Development Agreement between assessee and M/s. Ajmera Percept Realty for development of land. We note that this issue came up before the Assessing Officer on the basis of information appearing in Form No. 26AS as per which the assessee has entered into transaction of sale of immovable property to M/s. Ajmera Percept Realty for consideration of Rs. 14,33,25,000/-. During the course of assessment proceedings, ld. Assessing Officer called for the information relating to this transaction and it was submitted that the assessee has entered into Joint Development Agreement with M/s. Ajmera Percept....
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.... has further incurred expenses during the year at Rs. 86,22,586/-. It is also stated in the submission before the lower authorities that in the land at S. No. 519 and 580 some part of the land will be constructed by the assessee and remaining part with the Developer. However, no such details have been furnished. The immovable property in question is admittedly stock in trade therefore there remains no reason for referring to provisions of section 45(5A) which only relates to the computation of capital gain in relation to capital asset. Now the assessee has received interest free security deposit of Rs. 10.00 crore in the year 2018. It is claimed that the development work has not commenced. Also in the paper book at pages 55 to 67 is the legal notice given by the assessee to the Developer M/s. Ajmera Percept Realty on 24.06.2022 running into 12 pages and in para 23 the assessee states that it is terminating the Agreement of Development dated 16.02.2018 along with the Supplementary Deed dated 22.02.2021 and all other supplementary and incidental agreements and deeds in respect of the same. Assessee has also terminated the Power of Attorney dated 16.02.2018 thereby cancelling the lice....