Amit Kumar Verma Vs ITO (ITAT Kolkata)
When JDA Agreement Is Executed, Registered Later, & Eventually Cancelled — AO Must Re-examine
Assessee filed return of ₹5,30,350 but AO reopened u/s 147 on receiving information of a Joint Development Agreement with Ambe Bhagwati Marketing Construction Pvt Ltd. AO treated execution/registration of JDA as “transfer” u/s 2(47)(v) r/w s.53A & assessed long-term capital gain of ₹85,52,221 in AY 2015-16 u/s 144/147. CIT(A) upheld reopening, framed an extensive discussion on JDA taxation prior to 45(5A), held that “transfer” occurred on execution date 28.03.2014 (falling in AY 2014-15), deleted capital gain for AY 2015-16, but permitted AO to reopen AY 2014-15 u/s 148 r/w 150(1).
Before Tribunal, Assessee filed additional evidence including cancellation deed dated 29.07.2024, contending that no valid transfer ever occurred, POA was never executed, approvals were not obtained, & agreement collapsed. Tribunal held that the new evidence goes to the root of the matter & assessment was partly ex parte, hence full re-examination is required. Order of CIT(A) was therefore set aside, & the entire issue remanded to AO for de novo assessment with liberty to file all documents & raise all legal grounds.
Result: Appeal partly allowed for statistical purposes; matter remanded to AO for fresh assessment.
