SAHODHAR REDDY MUDDASANI,HYDERABAD vs. DCIT, CENTRAL CIRCLE-1(3), HYDERABAD

ITA 1619/HYD/2025Status: DisposedITAT Hyderabad15 January 2026AY 2016-17Bench: Shri Vijay Pal Rao (Vice President), Shri Madhusudan Sawdia (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that no taxable transfer occurred within the meaning of section 2(47) of the Act as the assessee had not received any consideration under the JDA during the relevant year. Possession was handed over only for the limited purpose of development, not in the nature of possession contemplated under section 2(47)(v) read with section 53A of the Transfer of Property Act.

What were the facts?

The assessee filed a return for AY 2016-17 declaring income of Rs.5,85,350/-. A search operation led to the AO initiating proceedings under section 153A. The AO observed that the assessee entered into a Joint Development Agreement (JDA) on 19.01.2016, which was considered a 'transfer' under section 2(47) of the Act, resulting in an addition of Rs.3,65,904/- as long-term capital gains.

What were the issues?

Whether the execution of a Joint Development Agreement (JDA) without receiving consideration and with possession given for limited development purposes constitutes a 'transfer' under Section 2(47) of the Income Tax Act, 1961, leading to taxable capital gains in the year of execution.

Which sections of the Income-tax Act were involved?

Section 45(1),Section 153A,Section 2(47),Section 53A,Section 54F

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Income Tax Appellate Tribunal, Hyderabad ‘A‘ Bench, Hyderabad

Before: Shri Vijay Pal Rao, Vice-Shri Madhusudan Sawdia

Hearing: 06/01/2026

Per Madhusudan Sawdia, A.M.: This appeal is filed by Shri Sahodhar Reddy Muddasani (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals)-12, Hyderabad (“Ld. CIT(A)”) dated 24.09.2025 for the A.Y. 2016-17. 2. The assessee has raised the following grounds of appeal:

ITA No 1619 of 2025 Sahodhar Reddy Muddasani

3.

The brief facts of the case are that the assessee is an individual deriving income from business and profession an

The order continues below.

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