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58 K.P. Muhammed Ali vs. ITO
ITA No.: 1008 / Coch / 2022
A.Y.: 2012-13
Date of Order: 12th January, 2024
Section: 2(47)(v) / (vi)
Where the assessee transferred 62 per cent of the land to a developer in exchange for 38 per cent of the developed area to be constructed over time under an unregistered joint development agreement / irrevocable power of attorney, the transaction was liable to capital gain under section 2(47)(vi) in the year of the agreement.
FACTS
On 27th June, 2011, the assessee and a developer entered into a Joint Development Agreement (JDA) and a General Power of Attorney (GPA) in respect of a piece of land in Kasaba village for the construction of a residential complex. Both JDA and GPA were not registered.
Under the said agreements, the assessee transferred his rights into 62 per cent of the land in lieu of 38 per cent of the developed area to be constructed over a period of time.
The construction was completed only in 2017. Thereafter, as and when the asses
