2017 (11) TMI 922 - SCH - Income Tax

Validity of reopening of assessment - addition on account of long term capital gains taxable in the hands of the assessee - JDA - transfer within the meaning of sub sections (ii) and (vi) of Section 2(47) - Held that - The special leave petition is dismissed. HC order hereby confirmed 2017 (5) TMI 260 - PUNJAB AND HARYANA HIGH COURT HC has held that the possession delivered, if at all, was as a licencee for the development of the property and not in the capacity of a transferee. In view of cancellation of JDA no further amount has been received and no action thereon has been taken. It was urged that as and when any amount is received, capital gains tax shall be discharged thereon in accordance with law. In view of the aforesaid stand, while disposing of the appeals, we observe that the assessee appellants shall remain bound by their said stand. The issue of exigibility to capital gains tax having been decided in favour of the assessee, the question of exemption under Section 54F of the Act would not survive any longer and has been rendered academic. The Tribunal and the authorities below were not right in holding the assessee-appellant to be liable to capital gains tax in respect of remaining land measuring for which no consideration had been received and which stood cancelled and incapable. - Decided in favour of assessee.

Summary

The Supreme Court dismissed the special leave petition after condoning the delay. Pending applications, if any, will be disposed of. (2017 (11) TMI 922 - SC)