Case Law Details
Sruthi Riedl Vs ITO (ITAT Hyderabad)
ITAT Hyderabad held that as the parties have entered into registered Joint Development Agreement (JDA) on 04.04.2007 and the “Group of assessee” have also handed over possession to the TBPD pursuant to the agreement. Hence, transfer took place in the assessment year 2008-09.
Facts- Information was received from I&CI, Hyd that the assessee along with 46 other persons had entered into a Joint Development Agreement cum General Power of attorney with M/s Trendset Jayabheri Projects LLP, Hyd for the construction of a residential and commercial project having a total value of Rs.177,50,70,000/- for an area of Ac.12.09 Gts. The assessee transferred her share of land admeasuring 12.50 Gts valued at Rs.453,75,000/- for the said development and has not offered any capital gains on the said transaction. Since, the assessee has not offered any chargeable long term capital gains, a notice u/s. 148 was issued to the assessee and was duly served on the assessee through the mail.
Aggrieved with the draft assessment order by making additions against the long term capital gains, assessee opted for filing objections before the Dispute Resolution Panel, Bangalore requesting to consider her plea that she had retained only 43% of land and thus the value of JDA should have been only Rs.1,95,11,250/- instead of Rs.4,53,75,000/-.
DRP after hearing the objections raised by the assessee has upheld the addition of Rs.2,56,92,030/- in the hands of the assessee. AO completed the assessment accordingly. Being aggrieved, the present appeal is filed.
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