No Capital Gains Tax on JDA Execution Until Land Possession Is Handed Over

Srinivas Pampati Vs ITO (ITAT Hyderabad)

No Capital Gains Taxable on Mere Execution of Development Agreement Without Transfer of Possession – Section 2(47)(v) Not Attracted: ITAT Hyderabad

Both Assessees were joint landowners of 6,380 sq. yds. of land at Karimnagar. On 02.03.2013, they along with two others entered into a Development Agreement-cum-GPA (JDA) with M/s. Shriyam Infrastructure for construction of a multi-storeyed residential complex.

Under the JDA:

• The total built-up area was 1,28,350 sq. ft.
• Landowners were to receive 32% &

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