Case Law Details
Shri. Damodar Reddy Vs ITO (ITAT Bangalore)
Conclusion:
Since assessee along with his mother and siblings entered into a JDA with M/s. S, which was a registered document, therefore, on entering into JDA, there was a ‘transfer’ as per section 2(47) and consequently capital gain was attracted.
Held:
Assessee contended that the authorities below failed to appreciate that there was no event of ‘transfer’ as defined in section 2(47)(v) in the case on hand as no possession was handed over to developer after entering into JDA and therefore there was no question of capital gains arising to assessee. It was held as per the details that emanate from the record, assessee along with his mother and siblings entered into a JDA with M/s. S, which was a registered document. The Hon’ble Karnataka High Court in the case of Dr. T. K. Dayalu (202 – Taxman 531) (Kar) had held that on entering into a JDA, there was a ‘transfer’ as per the provisions of section 2(47) and consequently capital gains was attracted. Respectfully following the aforesaid decision, assessee’s appeal was dismissed.
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