AMRENDRA KUMAR,DELHI vs. ITO WARD 23(3), DELHI

ITA 2937/DEL/2026Status: DisposedITAT Delhi16 September 2026AY 2021-2213 pages
AI SummaryAllowed

What were the facts?

The assessee entered into a Joint Development Agreement (JDA) for a plot of land. The Assessing Officer (AO) treated this as conversion of a capital asset into stock-in-trade, leading to additions for Long Term Capital Gains and Business Income. The CIT(A) confirmed these additions.

What did the Tribunal hold?

The Tribunal held that Section 45(2) is not applicable as the assessee was not in the real estate business and thus, the land was not converted into stock-in-trade. Furthermore, the transfer of flats to the wife without consideration was not considered a sale for business income purposes.

What were the issues?

Whether an unregistered Joint Development Agreement constitutes conversion of a capital asset into stock-in-trade, and whether a transfer of property to a spouse without consideration amounts to a sale for business income.

Which sections of the Income-tax Act were involved?

Section 45(2),Section 45(5A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI

Before: SH. MAHAVIR SINGH & SH. KRINWANT SAHAY

Hearing: 10.08.2026Pronounced: 16.09.2026

PER KRINWANT SAHAY AM Appeal in this case has been filed by the Assessee against the order dated 21.02.2026 passed by the CIT(A)/NFAC, Delhi for the A.Y. 2021-22. Grounds of appeal are as under :-

1.

On the facts and circumstances of the case, the worthy CIT (A) is not justified in confirming the addition of Rs. 1,93,78,293/- as Long Term Capital Gains on account of alleged conversion of Capital Asset into Stock In Trade.

2.

On the facts and circumstances of the case, the worthy CIT (A) is not justified in confirming the addition of Rs. 2,20,98,985/- as Business Income on account of alleged sale of stock in trade.

3.

That the appellant craves leave to add, amend, alter, or substitute any or all grounds of appeal before or at the time of hearing.

The order continues below.

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