No Capital Gain Tax on Mere Development Agreement Without Possession

Balasaheb Popatrao Phadol Vs ITO (ITAT Pune) Summary: The ITAT Pune allowed the appeal of Balasaheb Popatrao Phadol, holding that no capital gains tax is applicable in the assessment year 2012-13 solely based on the execution of a development agreement for his land with Shree Yashree Construction Pvt. Ltd. The Assessing Officer had assessed capital gains based on the initial development agreement in AY 2012-13, considering the property transferred then. However, the ITAT noted that a supplementary agreement was executed and registered in AY 2013-14, the commencement certificate was also receiv...