GLOBAL HEALTH PVT. LTD.,NEW DELHI vs. DCIT, CIRCLE- 10(1), NEW DELHI

ITA 4237/DEL/2017Status: DisposedITAT Delhi30 June 2021AY 2011-1212 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the cost of acquisition is allowable as the assessee parted with rights in the land. It further held that Section 45(2) is not applicable as the assessee is in the healthcare business, not real estate, and the conversion to stock-in-trade is the assessee's prerogative. Therefore, indexation should be allowed till the assessment year of the taxable event.

What were the facts?

The assessee entered into a Joint Development Agreement for 5 acres of land, opting for a cash consideration of Rs. 33 crores instead of built-up area upon project completion. The Assessing Officer disallowed the cost of acquisition, while the CIT(A) allowed it but restricted indexation till AY 2008-09, deeming the land converted to stock-in-trade.

What were the issues?

Whether cost of acquisition is allowable for land leased under a Joint Development Agreement, and whether indexation of cost should be restricted due to deemed conversion to stock-in-trade.

Which sections of the Income-tax Act were involved?

Section 45(2)

AI-generated summary — verify with the full judgment below

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

For Respondent: Ms. Sunita Singh, CIT-DR
Hearing: 05.04.2021Pronounced: 30.06.2021

PER SUDHANSHU SRIVASTAVA, JM: These cross appeals filed by the assessee and the revenue are against the order passed by the Ld. Commissioner of Income Tax (Appeals)-4, New Delhi {CIT (A)} vide order dated

22/05/2017 and are relating to Assessment Year (AY) 2011-12. The issue involved in these appeals is related to computation of long

term capital gain arising from transaction of sale of rights as per

Joint Development Agreement (JDA).

2.

0

Brief facts of the case are that the assessee was the owner of 43 acr

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 45(2)

All 243 judgments and leading authorities on Section 45(2) →

Recent GST High Court judgments

Search GST case law →