Section 2(47), read with sections 45, 142 and 143, of the Income-tax Act, 1961 - Capital gains

IT : Where assessees divested possession of land to developer and in lieu of that assessees would receive consideration in form of 50 per cent constructed area, capital gain accrued to assessees on account of transfer of land
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[2014] 52 taxmann.com 511 (Bangalore - Trib.)
IN THE ITAT BANGALORE BENCH 'A'
Income-tax Officer, Ward 7 (2), Bangalore
v.
N.S. Nagaraj*
RAJPAL YADAV, JUDICIAL MEMBER
AND ABRAHAM P. GEORGE, ACCOUNTANT MEMBER
IT APPEAL NO. 676 (BANG.) OF 2011
C.O. NO. 45 (BANG.) OF 2013
[ASSESSMENT YEAR 2007-08]
DECEMBER  1, 2014
Section 2(47), read with sections 45, 142 and 143, of the Income-tax Act, 1961 - Capital gains - Transfer (Land) - Assessment year 2007-08 - Assessing Officer found that assessees were owner and in possession of land and they entered into a joint development agreement with a company - Assessing Officer was of view that as per agreement transfer of land had taken place and assessees were assessable for long term capital gain - Assessees submitted that on execution of said agreement, no transfer had taken place - However, assessees had relinquished their rights in land upon which developer had incurred cost of construction and developed property and in lieu of that assessees would receive 50 per cent constructed area as a consideration - Whether therefore, transfer of land had taken place according to section 2(47)(v) - Held, yes [Paras 12,13 and 15] [In favour of revenue]