RE: [aaykarbhavan] Year of taxation for Capital gain on transfer of development rights to Builder

Dear CA Mahesh

 

Kindly refer the following case it will give a solution to your query.

Charanjit Singh Atwal and Others  (ITA 448/Chd/2011) (Chandigarh Tribunal)

 

With regards

CA Naga Raju P

 

NAGA & Associates, Chartered Accountants

Bangalore|Chennai|Hyderabad

www.nacas.biz

 

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From: aaykarbhavan@yahoogroups.com [mailto:aaykarbhavan@yahoogroups.com] On Behalf Of CA Mahesh Indani
Sent: 24 August 2013 11:33
To: aaykarbhavan@yahoogroups.com
Subject: [aaykarbhavan] Year of taxation for Capital gain on transfer of development rights to Builder

 

 

Post:

 

Dear Experts, I have some query regarding CG-

If assessee transfers DR in the year 2010 on conditional consideration of 40 % of new developed building ( Residential + Commercial shops) to be received from builder after completion of building in the year 2014, in which year Capital gain should be taxed?

Case is under scrutiny-

##
I am being arguing with ITO that the said transfer shall be taxable when the actual consideration is received. As when development rights were transferred land was Agricultural Land and was not capital asset. IT was converted to NA by builder after agreement.

ITO is arguing on the basis of section  Sec 2(47)(v)  that even if there is no consideration received, CG should be taxed in the year 2010 itself.

--

Regards,

CA Mahesh B Indani

(Mob- 0 94 226 20 850)

 

P  "Please don't print this Email, unless you really need to."

 

 

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