Vide  398 ITR 531 (SC) the Apex Court held that the object of section 2(47)(vi) is to bring within the tax net a de facto transfer of any immovable property.
Further therefore to subject a Joint Development Agreement(JDA) to liability under capital gains taxation the following four events must have occurredto regard it as a de facto transfer under the law:
- There should be an agreement between the owner of land and the developer for development;
- Such agreement should be registered and stamp duty paid thus rendering transfer in law ;
- Possession is also delivered; and
- All approvals for development are in place.
Till the time all these four elements are not satisfiedthere shall be no liability to capital gains tax.