Income from sale of developed flat under Joint Development Agreement taxable as capital gain

Vankadari Chinna Reddappa Chetty Vs ACIT (ITAT Bangalore)

ITAT Bangalore held that income from sale of developed flat, obtained under Joint Development Agreement (JDA), is to be treated as income from short term capital gain/ long term capital gain and not as income from business.

Facts- The assessment under section 143(3) of the Income Tax Act was completed treating income from LTCG from sale of residential flats under JDA and LTCG from sale of agricultural plots as ‘Income from Business’.