Gopal Naidu Thirumalesh vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Shri Gopal Naidu Thirumalesh, filed his return of income for the Assessment Year 2014-15 on 31/03/2015. The assessment was reopened on the ground that the income chargeable to tax had been escaped due to under-assessment of capital gain arising from the transfer of property in pursuance of a Joint Development Agreement (JDA). A notice under section 148 of the I.T. Act, 1961 was issued on 30/01/2017, and the assessee filed a return on 19/12/2017. The Assessing Officer noticed that the assessee had entered into a JDA cum General Power of Attorney (GPA) on 24/10/2013 in favor of M/s. R.K. Developers, Chittoor, for the development of 3000 sft of land. The Assessing Officer computed the full value of consideration accrued as a result of the transfer at Rs.58,49,800/- and also computed Long-Term Capital Gain of Rs.26,69,614/- and Short-Term Capital Gain of Rs.26,55,950/-. The assessee claimed exemption under section 54F of the I.T. Act, 1961, which was rejected by the Assessing Officer and upheld by the Commissioner of Income Tax (Appeals).…

Legal Issues

• 1. Whether the assessee is eligible for exemption under section 54F of the I.T. Act, 1961 in respect of the 3 flats received from the builder for surrendering 65% undivided share in the land in pursuance of the JDA dated 24/10/2013?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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