In case of development agreement capital gain is taxable in the year of agreement

The year of taxability of the capital gain in the case of development agreements came to be considered by the Hon’ble Bombay High Court in the case of Chaturbhuj Dwarkadas Kapadia v. CIT [2003] 260 ITR 491. It is pertinent to note that the High Court also noted both clauses (v) and (vi) of sec. 2(47) extracted above in its decision. We feel it pertinent to extract below the relevant observations made by the Hon’ble Bombay High Court in that case. “Before us, it was argued on behalf of the assessee that the date on which possession is parted with by the transferor is the date ...