2026 (9) TMI 433

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....C/S/250/2024-25/1072280884(1) on the following grounds: 1. "For that on the facts and in the circumstances of the case, the Ld. CIT(A) ought to have deleted the addition wrongly made by the Ld. AO amounting to Rs. 7,08,198/- as Long Term Capital Gain on account of the Joint Development Agreement in lieu of co-owned land of the assessee. 2. For that on the facts and in the circumstances of the case, the Ld.CIT(A) was not justified in upholding the action of the Ld.AO in wrongly making an addition of Rs. 1,23,750/- under the head income from Other Sources. 3. That the appellant craves leave to add, alter or delete all or any of the grounds of appeal." 2. Briefly stated the facts of the case are that the assessee ....

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....ny consideration disclosed by the assessee in the return of income sale consideration is taxable capital gain in the hands of Smt. Swati Paul only Rs. 70,81,981/-. Accordingly, notice u/s. 147/148 of the Act was issued to the assessee and assessee filed return on 19.04 .2017 declaring nil income. Accordingly, notice u/s. 143(2) of the Act was issued to the assessee, the assessee after examining the details, the assessee has issued show cause notice and assessee furnished reply stating that the long term capital gain does not arise at all, as per provision of section 2(47)(v) of the Act state that will not apply it shows that any transaction involving allowing the possession of an immovable property to be taken it clearly state that the poss....

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....ources. Accordingly, the total income was assessed at Rs. 8,31,948/-. 4. Aggrieved from the above order, the assessee filed appeal before the Ld. CIT(A). During the appellate proceeding, detailed written submissions were made and submitted that the developer was authorised were empowered to construct residential building on the assessee's land and nothing else. The Ld. CIT(A) observed that without taking possession how the developer can construct building on the said land. Further, the AO noted that the transacting parties vide letter dated 26.07.2016 clearly states that the person of the land owner to the developer on 14.08.2013 after receiving developer letter dated 23.07.2013 and the Ld. CIT(A) observed that the judgment of Hon'ble Ap....

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....he AO, therefore, there is a correct computation of long term capital gain. 8. Considering the rival submissions, it is noticed that the case of the assessee was reopened on the basis of registered JDA dated 08.08.2012 and the assessee share is 50% and the assessee will receive her share after construction of building. The relevant clause referred by the Ld. Counsel only gives right to the developer for construction of building and obtaining necessary approval from the competent authority. On careful going through the registered JDA dated 10.08.2012 the case pertains FY 2012-13 relevant to AY 2013-14. If mere entering into the JDA is considered as transfer in the case on hand, however, the AO has assessed in the AY 2014-15. Therefore, th....