Capital gains on redevelopment

Vivek Asher (CA Business) (31 Points)

11 December 2013  

Mr.X is owner of property. Property has 4 tenants. He enters into Joint Development Agreement

with Developer in FY 2013-14.He is paid 500 lacs on signing DA. Balance 500 lacs he will be given

when he settles with all tenants and gives vacant possession / or the tenants consent to Redevelopment.

The time limit for same is set at 24 months.

Along with DA he gives an licence to developer to enter upon prooperty for sole purpose of redevelopment

and an Irrevocable Power of Attorney to complete all legal formalities / obtain permissions. What view should 

the assessee take on Capital Gains ?