ACIT Vs Ajay Vasantrai Trivedi (ITAT Nagpur)
Material Facts
The Revenue filed two appeals against a common order of the Commissioner of Income Tax (Appeals) for Assessment Year 2012-13. The assessee, an individual engaged in the business of stationery distribution, had entered into a Joint Development Agreement (JDA) with M/s Concrete Developers in respect of property situated at Mouza Somalwada, Nagpur. During a search conducted on the developer, the JDA was seized, following which proceedings under Sections 153A read with 153C were initiated against the assessee. The Assessing Officer held that the execution of the JDA and handing over of possession constituted a transfer under Section 2(47)(v) and assessed long-term capital gains in Assessment Year 2012-13. The CIT(A) deleted the addition, holding that no transfer had taken place in that year.
Procedural History
The Revenue challenged the deletion before the Tribunal, contending that capital gains were taxable in the year in which the JDA was executed. The Tribunal heard both Revenue appeals together as they involved identical issues and facts.
Legal Issue
Whether execution of the Joint Development Agreement amounted to a transfer under Section 2(47)(v) of the Income-tax Act so as to attract capital gains tax in Assessment Year 2012-13.
