2020 (12) TMI 609

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....e grounds taken by the assessee read as under:- (a) On the facts and in the circumstances of the case, the Principal Commissioner of Income-tax, hereinafter referred to as the "Pr. CIT", has erred in invoking the provisions of section 263 of the Income tax Act, 1961 in the case of the appellant. (b) On the facts and in the circumstances of the case, the Pr. CIT has erred in concluding that the provisions of section 43CA are applicable in respect of a flat, held as stock in trade, transferred by the appellant prior to 1-4-2013 and thereby erred in concluding that the assessment order passed by the assessing officer is erroneous and also prejudicial to the interest of revenue. (c) The appellant respectfully submits ....

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....2 for Rs. 24 Lacs as against stamp duty value (SDV) of Rs. 31.45 Lacs which would attract the provisions of Sec.43CA which was not considered by Ld. AO and therefore, the order was erroneous and prejudicial to the interest of the revenue. Accordingly, the assessee was show-caused regarding invocation of provisions of Sec.43CA. 3.3 The assessee defended the assessment order by submitting that the flat was sold in earlier year vide agreement dated 26/04/2012 and the entire sale proceeds were already received in financial year 2012-13. The occupation certificate was received on 07/09/2013. The assessee followed project completion method to offer the income to tax and therefore, this sale was shown in the books in AY 2014-15. The attention w....

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....her appeal before us challenging the validity of revisional jurisdiction as exercised by Ld. Pr.CIT u/s 263. 4. Upon perusal of document on record, it is evident that the assessee entered into registered agreement for sale of proposed flat no. B/102 in certain project on 26/04/2012 for an agreed consideration of Rs. 24 Lacs as against stamp duty value of Rs. 31.45 Lacs. This document is a registered document. Upon perusal of terms and conditions, it is evident that the sale consideration of the flat was fixed at Rs. 24 Lacs and specific rights were created in a future property. The assessee was obligated to hand over the possession within a period of 24 months from the date of agreement. After going through the terms of the agreement, it....