No Capital Gains on JDA Without Consideration or Possession Transfer: ITAT Deletes Addition

Vasudeva Rao Vs ITO (ITAT Hyderabad) In this case, the assessee entered into a Joint Development Agreement (JDA) and the Assessing Officer taxed ₹66.31 lakh as capital gains, treating the agreement as a “transfer” under Section 2(47). The CIT(A) upheld the addition. The ITAT examined the terms of the JDA and found that possession was given only for a limited purpose of development, and not as contemplated under Section 53A of the Transfer of Property Act. Further, it was undisputed that no consideration was received by the assessee during the relevant year. Relying on the Telangana High ...