Popatrao Dashrathrao Suryawanshi Vs ITO (ITAT Pune)
JV Transfer Took Place in AY 2011-12; ITAT Pune Allows Revised Computation and Remands Capital Gains for Correct Year
The Pune Bench of the ITAT allowed the assessee’s appeal for statistical purposes for AY 2017-18, holding that the transfer of land occurred on 20.01.2011 upon execution of a registered Joint Venture agreement with possession, attracting sections 2(47)(iv)/(v). Consequently, capital gains—if any—could not be taxed in AY 2017-18. Since the land was agricultural and beyond municipal limits at the time of transfer, it was not a capital asset u/s 2(14), and no capital gains arose in AY 2011-12. The Tribunal further held that the disallowance of deduction u/s 54B was justified (purchase of agricultural land beyond the prescribed two-year period and multiple claims), and that neither s.54B nor s.54F was available.
Crucially, the ITAT held that appellate authorities can admit a revised computation / additional claim to determine the correct tax liability, relying on Pruthvi Brokers (Bom HC), Goetze (India) (SC) (limited to AO), NTPC (SC) and Jute Corporation (SC). On facts, flats were handed over on 23.12.2014 (occupancy certificate), making the FMV on that date the cost of acquisition in AY 2015-16. When flats were sold in AY 2017-18, only the difference between sale price and such cost could be taxed. The matter was remanded to the AO to verify the revised computation and determine the correct capital gains in accordance with law after due opportunity.
FULL TEXT OF THE ORDER OF ITAT PUNE
