The developer sells apartments to interested parties. It sells housing as part of the sale agreement on the terms it contains. The developer`s benefit from the development agreement is obtained after deducting building construction costs and other expenses. The Joint Development Arrangement (JDA) has always been a conflict zone between the notator and the tax office. In the real estate sector, JDA, the Joint Development Agreement, has proven to be the most popular agreement between landowners and developers. I would like to know how to calculate the capital gain for the owner of the land, can the costs of building the dwellings also be taken into account with the cost of acquisition? (I) [2018] 96 taxmann.com 274 (Calcutta), High Court of Calcutta, Principal Commissioner of Income Tax, Kolkata-1 vs. Infinity Infotech Parks Ltd. for A.Y. 2007-08 of July 18, 2018 – The February 7, 2007 agreement to share land and construction was in some relationship between the developer and the notator. It was also the obligation of the proponent after the agreement to make or ensure that such construction was carried out on the land. The property provided by the auditor to the developer was not for the developer`s share, as stipulated in the agreement, but for the entire land for construction that was to be done there.

It is true that the developer would have retained ownership of the land and refused to return ownership of the land to the notator, since the developer had physical control over it. But such resistance from the developer would not have been protected by Section 53A of the 1882 Act. It was only after the distribution of the land after the completion of the land that the developer was rightly able to retain the 61% share of the developer in possession of 61% of the developer and to oppose the expropriation by removing its contractual obligation and seeking refuge within the meaning of Section 53A of the 1882 Act, when the formal transfer of the developer`s right had not been implemented. In any view of the case, the right of the proponent to retain and protect these assets, in accordance with Section 53A of the 1882 Act, could never have been born before the completion of the work and the distribution. According to Section 45 (5A), the timing of the transfer is also crucial, as the indexation advantage is available until the date of asset transfer regardless of the year of misappropriation of the capital gain to the new S. 45 (5A). In addition, the time limit for investments of/s 54F is charged only from the date of the transfer.