M/S SURJIT KAUR DALAM vs. THE COMMISSIONER OF INCOME TAX AND OTHERS

ITA/447/2019HC Punjab & HaryanaPHHC01124233201918 September 2026Author: MR. JUSTICE DEEPAK SIBAL,MS. JUSTICE RUPINDERJIT CHAHAL5 pages
AI SummaryDismissed

What were the facts?

The assessee, an individual and widow of a deceased Society member, was nominated to a 500 sq. yard plot. The Society entered into a Joint Development Agreement (JDA) with developers for land development. The assessee was entitled to monetary consideration and a built-up flat. The Assessing Officer (AO) initiated reassessment proceedings under Section 148, holding that the JDA constituted a "transfer" under Section 2(47)(v) read with Section 53A of the Transfer of Property Act, 1882, and that the transfer occurred in the assessment year 2007-08. The AO assessed capital gains based on the total consideration, including the fair market value of the flat, after deductions. The Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal affirmed the AO's action, dismissing the assessee's appeal.

What did the High Court hold?

The High Court held that the issue in the present appeal was no longer res integra and stood concluded by its previous judgment in C.S. Atwal v. Commissioner of Income Tax, Ludhiana, dated 22.07.2015. In that case, the Court had examined identical Joint Development Agreements, the scope of Section 2(47)(ii), (v), and (vi) of the Income Tax Act, 1961, the requirements of Section 53A of the Transfer of Property Act, 1882, the nature of possession delivered, and the question as to whether the transaction gave rise to taxable capital gains. The Court found that the facts and issues involved in the present appeal were identical to those in C.S. Atwal. Therefore, no independent consideration was required, and the appeal was disposed of in terms of the aforesaid judgment.

What were the issues?

1. Whether the execution of the Joint Development Agreement (JDA) constituted a taxable transfer during the relevant assessment year (Section 2(47)(v) of the Income Tax Act, 1961, read with Section 53A of the Transfer of Property Act, 1882). 2. Whether the consideration which had neither accrued nor been actually received could be subjected to capital gains tax. Assessee's Contentions: The assessee contended that the JDA did not constitute a taxable transfer in the relevant assessment year and that consideration not yet received could not be taxed. Revenue's Contentions: The revenue, through the Assessing Officer and the Tribunal, argued that the JDA amounted to a transfer and that the consideration was taxable in the assessment year 2007-08.

Which sections of the Income-tax Act were involved?

Section 2(47),Section 53A,Section 148,Section 147,Section 254(1),Section 260A

AI-generated summary — verify with the full judgment below

ITA-447-2019(O&

IN T

M/S SURJEE

THE COM AND OTHER

1 The dat 2 The dat 3 The dat 4 Whethe pronou 5 The de and rea

CORAM: H H

Present:

RUPINDERJ

1.

Section 260A order dated Income Tax &M)

-1- THE HIGH COURT OF PUNJ AT CHANDIGA

ET KAUR DALAM

Versus

MMISSIONER OF INCOM RS

te when the judgment is reserved te when the judgment is pronounced te when the judgment is uploaded er only operative part of the unced or whether the full judgment is p lay, if any of the pronouncement of f asons thereof HON’BLE MR. JUSTICE DEE HON’BLE MS. JUSTICE RUP Mr. Rajesh Kapoor, Advocate for the appellant. Ms. Urvashi Dhugga, Sr. Standin with Ms. Kavita, Advocate for the Respondents.

***** JIT CHAHAL, J. The present appeal has been p A of the Income Tax Act, 1961 ( 29.07.2013 passed under Sect x Appellate Tribunal, Amritsar

JAB AND HARYANA ARH ITA-447-2019(O&M)

....Appellant ME TAX, CHANDIGARH

....Respondents 11.08.2026. 18.09.2026 18.09.2026 judgment is pronounced Full full judgment, Not applicable EPAK SIBAL PIN

The order continues below.

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