Tax Liability Under JDA Arises Only Upon Conveyance Of Property, Not On Execution Of Agreement: Bombay High Court

The Bombay High Court has ruled that "tax liability under a Joint Development Agreement (JDA) arises only upon the conveyance of the property, not on the execution of the agreement." This is a significant ruling that clarifies the tax implications of real estate transactions. The court's decision, which is a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a company can be held responsible for the misdeeds of another person. The court's decision is a crucial reminder to all that they must be diligent in their dealings.