TaxTMI 
TaxTMI 
TaxTMI 
2021 (7) TMI 725
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....ng the action of the ld. AO in making addition of Rs. 5,39,711/- U/s 43CA of the Income Tax Act, 1961. The action of ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by deleting the said addition of Rs. 5,39,711/-. 2. The assessee craves its right to add, amend or alter any of the grounds on or before the hearing." 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. 3. The brief facts of the case are that the assessee firm was engaged in the business of real estate including PGA club house in the name and style of Spytech Buildcon. The assessee filed its return of income for the year under consideration ....
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....r of the ld. CIT(A) and the same is reproduced below: "Provisions of Section 43CA were introduced by Finance Act 2013, w.e.f 01.04.2014 (i.e. AY 14-15). Thus, Section 43CA had applicability only on those transactions for sales, wherein both the agreement to sale and registered sale deed were executed after 1.4.2013. It is undisputed that, in the case at hand, the assessee firm, for the purpose of sale of flats, had entered into agreement for sale prior to 1.4 2013 (Refer Table above or at Page 2 of AO Order). It is submitted that when agreement to sale of flats were entered and the sale consideration was decided, provision of Section 43CA was not in existence. Thus, the fact that Sale Deeds were registered after 1.4.2013 would have no....
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....s consideration for each of flats to A be sold Thereafter, the assessee firm lost all its right to make any changes into the terms and conditions for the sale of flats, including the value at which the flats were to be sold. It is submitted that the assessee firm received the entire amount of sale consideration, pertaining to Studio No. F, of Rs. 10,58,029 on 4.05.2012 i.e. at the time of booking of such flat (PB: 1). Further, the amount of consideration pertaining to J002 was to be received before 15.03.2013 as per the agreement to sale. (PB: 5) It is trite law that any provision of the Income Tax which is introduced into statue for first time and which puts additional burden on the assessee's should have a prospective effect. Thus....
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....rd. As per facts of the present case, the assessee firm is engaged in the business of real estate development and during the relevant previous years, sold three flats No. J-001, J-002 and Studio No. 5 from its residential project Pearl Green Areas and all flats were sold at the value less than Fair Market Value (FMV)/DLC as on the date of registration of the sale deed. However, according to the ld. AR, for all these flats, the assessee firm had entered into agreement to sell prior to the start of the relevant previous year i.e. 01/04/2013. It was further argued that the provisions of Section 43CA of the Act were not made applicable for the sales undertaken by the assessee firm, as those entire sale deeds were registered during the relevant ....
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.... is sold by an agreement and subsequently a sale deed is executed. Thus, in case of any difference of date of registration of the transfer of asset and date of agreement, then the value assessable by the Stamp Duty Authority in respect of such transfer, the date of the agreement shall be taken. For ready reference, provisions of Section 43CA are reproduced as under: 43CA. (1) Where the consideration received or accruing as a result of the transfer by an assessee of an asset (other than a capital asset), being land or building or both, is less than the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or asse....
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....[or through such other electronic mode as may be prescribed94] on or before the date of agreement for transfer of the asset. As per sub-section (3) and (4) of section 43CA, the benefit of prior agreement is granted if the consideration is received at the time of agreement other than cash. In the case in hand, the booking is claimed to have been made prior to 01/04/2013 whereas the sale deeds were executed after 01.04.2013 which falls in the previous year relevant to the assessment year under consideration, therefore, provisions of Section 43CA are applicable for the assessment year under consideration. Thus once the provisions itself has taken care of such a situation or difference in date of prior agreement, then the applicability of prov....