INCOME TAX ACT, 1961

Section 54

Capital gains - Joint development agreement - Deduction under section 54 - CIT(A) not commented on contention of assessee that he had already paid long-term capital gain (LTCG) in preceding years

Assessee declared income from long-term capital gains and claimed exemption under section 54 for investment in a property. Revenue alleged that assessee was engaged in investment in land, construction of flats through contractors and selling of flats to customers, but he failed to disclose capital gains and timeline prescribed in terms of section 54 was not adhered to. Case of assessee was that he had already paid capital gain tax in assessment years 2005-06, 2006-07 and 2007-08, on account of joint development agreement, therefore, on same income, assessee could not pay tax in assessment year 2012-13, when said property was sold. Held: It was abundantly clear that possession of owner's share was given by developer in phases in subsequent years. Assessee paid long-term capital gain (LTCG) on the portion which was handed over to him by the developer in the respective years of possession. CIT(A) did not comment on contention of assessee that he had already paid the long-term capital gain (LTCG) in preceding years. Since while adjudicating issue, CIT(A) ignored important submission of assessee that he already paid taxes on long-term capital gain (LTCG) in preceding years, and therefore, assessee need not to pay the taxes on the same income again in relevant assessment year.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 254 Rule 34(5)

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