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TMI Blog2019 (1) TMI 1282X X X X Extracts X X X X X X X X Extracts X X X X ..... uisition of the land or rights therein by the assessee on the date of agreement. Consequently, therefore, when two partners representing 50% share in the profit as well as the assets of the firm retired, the assessee distributed 50% of the rights in land which remained with the assessee upon execution of the development agreement and offered the notional value to long term capital gain, which the Tribunal correctly approved. No question of law, therefore. - Income Tax Appeal No. 1620 OF 2016 - - - Dated:- 23-1-2019 - AKIL KURESHI M.S. SANKLECHA, JJ. Mr. Arvind Pinto for the appellant None for the respondent P.C. 1. The Revenue is in appeal against the order of the Income Tax Appellate Tribunal ( the Tribunal for sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % of the land. According to the assessee, after transfer of land pursuant to said development agreement, the assessee would remain owner of the 50% of the land with FSI available on such land and would have a right to claim 50% of the developed property from M/s. K. Raheja. 5. On 31.12.2006, two partners of the firm Shri. Yogendra Sanghavi and Shri. Somin Sanghavi having 34% and 16% share in the property of the firm retired. These partners were also entitled to receive share in the property of the firm in the ratio of share of profit in the partnership firm. Accordingly, the assessee firm distributed 50% of the land and the FSI and right to develop the property to the retiring partners. In terms of the provisions contained in Section 45 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long term capital gain. 9. We are in agreement of the view taken by the CIT(A) and the Tribunal. The Revenue is not justified in holding a belief that the capital asset in question can be said to have been acquired by the partnership firm only on 28.11.2005, which was the date on which the development agreement was executed. As noted, what happened under the development agreement between the assessee and M/s. K. Raheja was transfer of certain rights in the property, namely 50% of the land with development of available FSI thereon on certain terms and conditions. Under the said agreement, the assessee would receive a portion of the developed property as well as cash amount of ₹ 4.80 crores to be paid. The assessee on assessed total ..... X X X X Extracts X X X X X X X X Extracts X X X X
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