Article
Determination of year of taxability for transfers arising out of registered Joint Development Agreements
By Abhinov Vaidyanathan
The article in this issue of Direct Tax Amicus attempts to analyze the aspect of determining the year of taxability of capital gains arising out of the transfer of immovable property under Joint Development Agreements (‘JDAs’). It analyses the provisions of the Income Tax Act, 1961 and the jurisprudence laid down by various Courts and ITAT in case of registered JDAs. Summarizing various case law holding that date of execution of the JDA must be taken as the date of transfer, the article also elaborates on case law which have held that the date of execution of the JDA cannot be taken as the date of transfer. It concludes by stating that no straight-jacket formula can be applied in order to determine the year of taxability in case of registered JDAs. According to the author, all the conditions stipulated under Section 53A of Transfer of Property Act, 1882 have to be satisfied for a transaction to qualify as a transfer for the purposes of Sections 2(47)(v) and 45 of the Income Tax Act...
Notifications & Circulars
- Exemption eligibility if loans or borrowings taken by specified funds for investment in India
- E-Settlement Scheme, 2021 notified
- Additional information to be uploaded in Form 26AS
- Declaration by company for settling retrospective tax cases – Rules notified
- Deduction available of expenditure incurred to purchase sugarcane up to the price fixed by State Government
Ratio decidendi
- Mere signing of contract without having any other activity in India cannot trigger PE exposure in India – ITAT Delhi
- Absent a principal-agent relationship, deduction of TDS under Section 194H is not warranted – Bombay High Court
- Classification of agricultural land as non-agricultural by buyer not attracts capital gains in seller’s hands – Kerala High Court
- Revisionary power under Section 263 to be exercised by Commissioner suo moto and not under any recommendation or reference – ITAT Pune
- Black Money Act can be used to trace undisclosed foreign bank accounts which existed but closed prior to its coming into force – ITAT Mumbai
