Case Law Details
Shri. Raja Reddy (HUF) Vs ACIT (ITAT Bangalore)
During the course of hearing, assessee has tried to demonstrate from the assets and liabilities statement as on 31.03.2007 and 31.03.2008 and the balance sheet for the impugned assessment years 2007-08 and 2008-09 to demonstrate that before entering into this JDA, the capital asset was converted into stock-in-trade and capital gain on its transfer was also offered at the time of sale of flats.
She has also tried to demonstrate that at the time of JDA, the land which was part of the stock-in-trade was contributed under JDA for the construction of residential apartments. Therefore, the profit earned on sale of flat would be a business profit.
It was contended that the Revenue has not raised any dispute with regard to fulfilment of requisite conditions for claiming deduction of exemption under section 80IB(10) of the Act as the claim raised by developer was allowed with respect to shares of his profit.
We have also examined the judgments referred to by the assessee and we find in those judgments, the claim of exemption under section 80IB(10) of the Act was allowed to both the parties of the JDA as both of them were engaged in construction activities.
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