Tax Liability on Capital Gains Arises in Year of Possession, Not Occupancy Certificate

Sri Alagappa Muthiah (HUF) Vs DCIT (ITAT Bangalore)

Conclusion: Liability to capital gains had not arisen in the assessment year 2017-18 as occupancy certificate was received on 01/02/2017 for commercial portion and 17/03/2017 for residential portion but in the assessment year 2018-19 on receipt of possession.

Held: Assessee-HUF co-owned 6 acres 23.2 guntas of land in Hebbal Village had entered into a Development Agreement, resulting in the development of his property into commercial and residential units, including the entire commercial un

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