Case Law Details
DCIT Vs Karma Lakelands Pvt. Ltd (ITAT Delhi)
The undisputed fact is that nothing has happened during the year under consideration, the impugned land was converted into stock in trade in earlier assessment year. It is not in dispute that the agreement between the assessee and Unitech is not an agreement for sale and it is not in dispute that there is no consideration. In our opinion where assessee converted his land into stock in trade and thereafter a development agreement was entered into by the assessee with the developer, the capital gain arising from the conversion of land into stock in trade is assessable in the previous order in which the property is sold by the assessee and not in the year of development agreement. Considering the facts of the case in hand in totality, we are of the firm belief that the assessee has not transferred his right to Unitech there is no transfer of any right in title or interest in stock in trade during the year under consideration and hence no income accrues to the assessee we, therefore, decline to interfere with the findings of the CIT(A). The appeal filed by the revenue is accordingly dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal filed by the revenue is preferred against the order of the CIT(A)-1, New Delhi dated 13.08.2010 for A.Y. 2007-08.
2. The grievance of the revenue read as under :-
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