Development agreement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2015 Assessee has given a land along with Shed for Developers and in return he got 1 flat as consideration with in 2 years of transfer of property to developer and Exemption was claimed u/s 54F. But he sold the Flat which he received as consideration with in two years from date of acquisition of Flat. But when date of sale is compared with date of development agreement, it is more than 3 years. Whether Assessee need to Pay Capital gain tax as it is transferred with in 3 years from date of acquisition or whether he need not pay any tax as it was transferred after 3 years from date of development agreement.
What is the relevant date for Calculating CG Tax (Acquisition date or Agreement date)
Please Support with Case laws if any
Thanks in Advance....

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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18 May 2015 IN CASE OF DEVELOPMENT AGREEMENT CG ACCRUES TWO TIMES. ONE AT THE TIME OF HANDING OVER OF LAND FOR DEVELOPMENT AND ANOTHER AT THE TIME OF SALE OF FLAT RECD AS PER DEVELOPMENT AGREEMENT
REFER TO
CHATURBHUJ DWARKADASS KAPADIA 260 ITR 491
JASBIR SINGH SARKARIA 294 ITR 196
H B JAIRAJ KARN HC
T K DAYALU 202 TAXMANN 531
dR MAYA SHENOY 124 TTJ 692
CA MANOJ GUPTA
JODHPUR
09828510543

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