The Income Tax Appellate Tribunal (ITAT), Banglore Bench held that the capital gain deduction is allowable for eight flats received under Joint Venture Agreement.
The assessee, Maurice Patrick De Rebello an individual, admitted Long Term Capital Gains (LTCG) arising from Joint Development Agreement (JDA) amounting to Rs.74,09,736 for the assessment year 2012- 2013, in respect of the shares of 35.35% of immovable property at Lavelle Road, Bangalore. For the above-said assessment year, viz., 2012-2013, the assessee had also paid taxes thereon.
The AO held that the contract, read as a whole, indicates passing or transferring of complete control over the property in favor of the developer, then the date of the contract would be relevant to decide the year of chargeability and even arrangement confirming privileges of ownership without transfer of title could fall under section 2(47)(v) of the Income Tax Act.
The AO observed that as such, the assessment year 2009-2010 is the year of transfer and the income is chargeable in the said assessment year. The Assessing Officer also did not grant the benefit of exemption under section 54 of the Income Tax Act for the entire built-up area except for the self-occupied flat of the assessee.
The coram consisting of Chandra Poojari and George George K held that the assessee is entitled to deduction under section 54 of the Income Tax Act on the entire built-up area received from the builder as per the JDA.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in
