The land owners gave the property for development to developers. When the land owners will be taxed capital gain and on what amoun t ie at the time of receipt of developed area or at the time of disposal of the developed area of ther allocation
In case of development agreement date of contract is relevant - If on a bare reading of a contract in its entirely, an Assessing Officer comes to the conclusion that in the guise of the agreement for sale, a development agreement is contemplated, then Assessing Officer is entitled to take date of the contract as date of transfer in view of section 2(47)(v) - Chaturbhuj Dwarkadas Kapadia v. CIT [2003] 260 ITR 491/129 Taxman 497 (Bom.).
Kindly see power point presentation relating to this subject which was uploaded by me on 2nd September, 2007 which is in files section of our caclubindia.com
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