TaxTMI 
TaxTMI 
2019 (3) TMI 671
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....ion as well as the appeals are taken up together for disposal, as the same are arising out of a common issue. 2. The assessee is engaged in the development of Real Estate, from time to time, launches it projects for booking at pre-construction stage and invite application from the interest parties who make the applications for allotment alongwith the earnest money so deposited with the application. After processing, the letters of allotments are issued to the prospective buyers. Later on, the assessee enters into with the Allottee Apartment Buyer's Agreement which is in the nature of "Agreement to Sell/Purchase of the Property". After completion of the project, Sale Deed/Conveyance Deeds were required to be executed between the assessee an....
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....records of the buyers. In case the initial buyer of a flat intend to dispose of the same to another buyer, the details are to be entered in the records of the appellant as per the prearrangement. For such change in the books of account and transfer to another buyer, the appellant are charging "administrative charges". We note similar set of facts came up for consideration in the case mentioned above, by the learned Counsel. The Tribunal in the said case observed as below :- "9. The respondents were sought to be taxed under the category of "real estate agent's service" in terms of Section 65 (88) (89) of the Finance Act, 1994. The statutory provision of the tax entry are as below :- "Section 65 (88) and (89) of the Act, 1994, defines t....
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.... the respondent acted in a capacity of "real estate agent" between the earlier owner and the new buyer of the flat. The changes made in the records of the respondent are not causative factors for such sale or purchase. We are in agreement with this observation of the Original Authority. In RIICO - 2017 - TIOL - 1725 - CESTAT - DEL., the Tribunal held that the transfer charges received by the appellant for permitting the transfer of allotted land from one person to another cannot be taxed as real estate agent service because they were custodians of land and were dealing with the allottee on principal to principal basis, not as an agent of either party. We note that the reliance placed by Revenue on Ajay Enterprises Pvt. Ltd. vs. CST, Delhi -....