Mr Agarwal, a resident of Koramangala, Bengaluru, sold 17 apartments during April 1, 2019-March 31, 2020, and made Rs 11.8 crore gains. The income tax department sent him tax notices, as he did not pay tax on these gains. However, he challenged the tax demand before the Income Tax Appellate Tribunal (ITAT) Bangalore and won.
According to the submission, Mr Agarwal owned two large parcels of land in Kumbena Agrahara. He entered into an agreement with a builder for the development of these properties. Under the agreement, the builder constructed two apartment complexes on these land parcels and, in return, allotted 76 apartments in the first project and 46 apartments in the second to Mr Agarwal. This gave Mr Agarwal ownership of 122 apartments.
