Surjeet Kaur Dalam Vs CIT (Punjab & Haryana High Court)
Unreceived JDA Consideration and Unconstructed Flat Cannot Be Taxed as Accrued Capital Gains—C.S. Atwal Ruling Applied to Another Member of Same Society
Summary: The assessee was the widow of Late Shri Natha Singh Salam, a member of the Punjabi Cooperative House Building Society Ltd. The Society owned approximately 21.2 acres of land in Village Kansal, and the assessee’s husband held rights corresponding to a plot measuring 500 square yards.
On 25-02-2007, the Society entered into a tripartite Joint Development Agreement with Hash Builders Pvt. Ltd. and Tata Housing Development Company Ltd. Under the JDA, each member was entitled to monetary consideration and constructed area based on the size of the plot held by that member.
In respect of the assessee’s 500-square-yard entitlement, she was to receive:
- Monetary consideration of ₹82,50,000; and
- One residential flat measuring 2,250 square feet.
However, the JDA was only partly implemented. Payments were made only up to the second instalment, and conveyance was executed in favour of Tata Housing only in respect of 7.7 acres. Disputes thereafter arose between the Society, its members and the developers.
Against the total promised monetary consideration of ₹82.50 lakh, the assessee actually received only ₹33 lakh—₹15 lakh during the relevant previous year and ₹18 lakh during the succeeding year. The promised flat was also not delivered.
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