KAMLESH PUKHRAJ TALERA,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-5(1)(1), BANGALORE

ITA 1917/BANG/2025Status: DisposedITAT Bangalore14 August 2026AY 2018-1922 pages
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What were the facts?

The assessee sold transferable development rights (TDRs) for ₹6,01,53,500, received in exchange for land. The assessee claimed this amount as exempt, arguing TDRs have no ascertainable cost of acquisition, thus capital gains computation fails. The Assessing Officer and CIT(A) treated TDRs as capital assets with a nil cost of acquisition, making the entire sale consideration taxable as capital gains.

What did the Tribunal hold?

The Tribunal held that TDRs are capital assets and the consideration received from their sale is taxable as capital gains. The Tribunal rejected the assessee's argument of parity with his brother's assessment, stating that an error in one assessment does not bind the Revenue. However, in the interest of justice, the AO was directed to compute capital gains after reducing the cost of acquisition attributable to the land exchanged.

What were the issues?

Whether TDRs are capital assets and if the consideration received from their sale is taxable as capital gains, especially when the cost of acquisition is not ascertainable. Whether the principle of parity applies due to a similar transaction in a co-assessee's case not being taxed.

Which sections of the Income-tax Act were involved?

Section 2(14),Section 45,Section 48,Section 55(2)(a),Section 143(3),Section 144B,Section 234A,Section 234B,Section 234D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI SOUNDARARAJAN K.

PER SHRI PRASHANT MAHARISHI, VICE PRESIDENT:

1.

This appeal is filed by Shri Kamlesh Pukhraj Talera, [the assessee/appellant], for Assessment Year 2018-19 against the appellate order dated 8 July 2025 passed by the National Faceless Appeal Centre, Delhi [the learned CIT(A)]. By the said order, the Ld. CIT(A) dismissed the assessee’s appeal against the assessmen

The order continues below.

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