Joint development agreement did not trigger capital gains under section 2(47)(v), ITAT holds

5-Second Takeaway

The ITAT held that the joint development agreement did not amount to a transfer under section 2(47)(v), so no capital gains were taxable in the relevant year. It found that the developer had not taken legal possession under section 53A, no consideration was received, and construction was not completed during the year.

The assessee and co-owner had entered into a development agreement with Naman Homemakers (P) Ltd. for development of the land. The Revenue sought to tax capital gains on the footing that the arrangement amounted to a transfer under section 2(47)(v).