SITHA MAHALAKSHMI KATAMANENI,VIJAYAWADA vs. INCOME TAX OFFICER, CENTRAL CIRCLE, VIJAYAWADA

ITA 226/VIZ/2026Status: DisposedITAT Visakhapatnam31 August 2026AY 2015-1614 pages
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What were the facts?

The assessee entered into a Joint Development Agreement where she received eight flats in exchange for her land. The Assessing Officer (AO) reopened the assessment to tax capital gains, using the developer's construction cost as the full value of consideration. The assessee argued for using the Fair Market Value (FMV) as on the date of the agreement.

What did the Tribunal hold?

The Tribunal held that the AO erred in adopting the developer's construction cost as the full value of consideration. It ruled that the FMV as on the date of transfer, or as per Section 50D and the analogy of Section 45(5A), should be considered, aligning with the assessee's computation.

What were the issues?

Whether the cost of construction incurred by a developer over multiple years can be considered the full value of consideration for capital gains in the year of agreement, and whether FMV as on the date of transfer is the appropriate basis.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 143(2),Section 48,Section 50D,Section 45(5A),Section 2(47)(v),Section 53A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI VIJAY PAL RAO, HON’BLE & SHRI MANJUNATHA G, HON’BLE

PER MANJUNATHA G, AM: This appeal is filed by the Assessee is directed against the order of Learned Commissioner of Income Tax (Appeals), Visakhapatnam-3 [hereinafter in short “Ld. CIT(A)”] vide DIN: ITBA/APL/S/250/2025-26/1085992795(1) dated 13.02.2026 for the Assessment Year 2015-16. ITA 226/VIZ/2026 SITHA MAHALAKSHMI KATAMANENI

2.

The Assessee has rais

The order continues below.

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