Case Law Details
DCIT Vs Shivaji Bhagwanrao Jadhav (ITAT Pune)
The issue under consideration is whether Capital Gain will be taxable in the year when consideration for sale of land received irrespective of the possession of the land?
In the present case, the assessee along with his wife purchased about 80 Acres 3 Guntha of land at Village Gevrai Taluka. As per the assessee, the possession of land was not given by the assessee in the assessment year 2008-09. As per the assessee, the land was sold on 23-4-2010 and the capital gain was offered to tax in the relevant assessment year 2011-12. According to the assessee, the asset so purchased on 27-1-2006 was eventually sold only on 23-4-2010, although, the agreement was entered on 2-6-2007. Otherwise, the assessee received the consideration to the extent more than 97.88% by the end of the assessment year 2008-09 itself. It was the view of the AO that gains/profits were taxable in the assessment year 2008-09 due to the fact that 97.88% of the consideration was received in the assessment year 2008-09 only.
ITAT states that the year of possession of land, payment of entire consideration and the compliance to the conditions stated in the agreement are the relevant factors that decides the year of taxation. In the present case, these events happened only in the assessment year 2011-12 and not in the current assessment year 2008-09. Accordingly, ITAT are of the opinion that the year of taxation in the assessment year 2011-12 offered by the assessee and not assessment year 2008-09 as considered by the Assessing Officer in the assessment. Therefore, the relevant issue is decided in favour of the assessee in respect of year of taxation.
FULL TEXT OF THE ITAT JUDGEMENT
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