Case Law Analysis
|Income Tax Appellate Tribunal
Section 45(5A) IT Act | Capital Gains Taxable on Transfer Date, Not Occupancy Certificate, for Pre-2018 JDA Transactions : ITAT Bangalore
The ITAT Bangalore has ruled that for Joint Development Agreements executed before April 1, 2018, capital gains arise in the year the land is transferred to the developer-not when the occupancy certificate is issued. This clarifies a long-standing ambiguity for developers and landowners, ensuring tax liability aligns with the actual transfer of control, not delayed completion milestones.