In The Blind Men and the Elephant by American poet John Godfrey Saxe (1816-1887), six blind men meet an elephant for the first time and each man touches another part of the elephant and makes predictions about the nature of the elephant. The same is true of the history of income tax on the Joint Development Agreement. Landowners, developers, the despised, tax advisors, accountants and recourse agencies are like those six blind men who touch the different facets of the elephant called JDA and make predictions about the tax impact! If, in the context of a development agreement, assessee allowed the developer to enter premises on his land in order to do all the things necessary for the construction of housing, it could be said that Assessee transferred ownership of its land to the developer and thus a `transfer` under Article 2(47) and was taxable as a capital gain in the year in which the contract was concluded. Since the contract is partially performed in the type referred to in section 53 of the Transfer of Property Act, 1882, section 2(47) Clause (v) is clearly attracted. Article 95 provides that an agreement entered into by an evaluator may be declared an “inadmissible obsedation agreement” (BIT). There have been some hiccups in the law that for decades have paved the way for litigation: a new section 194IC has been inserted, according to which the deduction of withholding tax (TDS) @ 10% is made applicable by the developer to any amount paid in consideration / payable (no benefit in kind) to the resident landowner under the agreement mentioned in section 45 (5A). In addition, no threshold is provided, i.e. it is applicable regardless of the payment number. – Amendment of section 54F by the Finance Act 2014 w.e.f. A.Y. In 2015-16, there are many stops allowing the deduction of u/s 54F for more than one dwelling obtained under a development contract.
However, the amendment limited the benefit to a single dwelling house. [See TAV Gupta vs ITO  93 taxmann.com 249 (Bangalore), Ms Adeebunnisa Begum Vs ITO, ITA No. 816/2017 (Hyderabad), etc.] Thus, the case of the conversion of real estate to stock [SIT] results in a capital gain imposed during the year of the transfer/sale of SIT. What is the date of transfer / sale of shares in the context of trading in case of transfer of land (after conversion to SIT) to the developer under JDA? Judicial GAAR: otherwise still, in the absence of a legal GAAR as above, the powers of the courts will remain beyond the specific provisions of GAAR (Judicial GAAR) and even if a particular case that does not fall under the specific provisions of GAAR (may be due to a tax advantage below the threshold of Article 2). .