TaxTMI 
TaxTMI 
2022 (11) TMI 174
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....cumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs.2,42,77,500/- made u/s 56(2)(vii) of the I.T. Act, being difference in market value and agreement value. 2. Whether, on the facts and in the circumstances of the case, the Ld.CIT(A) ignored the difference between the amount invested in 2011 and amount received back in A.Y. 2013-14 i.e. Rs.1.30 cr. (Rs.6.30 cr - 5 cr.) which should have been brought to tax as "Income from other source". 3 The appellant craves leave to amend or alter any ground or add a new ground which may be necessary." 2. Both these grounds of appeal are based on similar facts, therefore, the same are adjudicated together. 3. The fact in brief is that assessee filed return of income on....
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.....56 of the I.T. Act. 4. Aggrieved the assessee filed the appeal before the ld.CIT(A). The ld. CIT(A) has deleted the addition made by the A.O. 5. During the course of appellate proceedings before us the ld. D.R has supported the order of A.O. On the other hand, the ld. Counsel filed paper book comprising copies of agreement for the purchase of the impugned flats. The ld. counsel contended that originally assessee had booked flat No. 4707 and the booking was cancelled because of high restriction as permission was not granted for constructing building up to 47th storey. Therefore, the booking was shifted to flat No. 3907 of saleable area of 3341 sq. ft. It is further submitted that construction of the flat could not be materialized, theref....
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....-. Subsequently, vide letter dated 14.11.2013 the developer has informed the assessee that flat no. 4707 cannot be constructed due to various reasons, therefore, in lieu of that flat builder has undertaken to provide the assessee flat No. 3907 admeasuring 3341 sq. ft. and the assessee had paid an additional sum of Rs.8,46,232/- on 26.05.2014. Even after this the developer informed the assessee of its inability to construct and provide the alternative residential premises Unit No. 3907 admeasuring 3341 sq.ft. Under such circumstances the assessee had threatened the developer for specific performance to provide the residential premises or assessee will initiate criminal proceedings against them. Thereafter discussion with the builder with a v....
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....eet. The assessee paid an amount of Rs. 72.11 lakhs at the time of booking. The assessee further made payments in F.Y. 2010-11 thereby making total payment of Rs. 5.08 Cr. 6.3 Subsequently, vide letter no. dated 14.11.2013 the developer showed its inability to provide to the appellant flat. The developer in lieu of the said of the said flat offered Flat No. 3907 measuring 3314 sq. Feet. The appellant paid an addition sum of Rs.8.46 lakhs on 26.05.2014. 6.4 The Assessing Officer treated this shifting of flats as transfer. The Assessing Officer took the difference in Stamp Duty Valuation and the price paid by assessee as income u/s 56 of the Income Tax Act. 6.5 It is a common fact that many developers failed to honour their commitmen....
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.... litigation. Secondly we are witness to many such cases where buyers are running from pillar to post either to get the property or the amount of refund. In many such cases, the Supreme Court has to intervene to protect the interest of the buyers. The third option to accept alternate consideration (other property offered by the developer). 6.9 The assessee's case falls in the third category. Wherein the assessee after waiting for a long time accepted the alternate consideration offered by the developer. In fact, the original understanding, which was entered for buying one flat was amended by replacing the counter consideration offered by developer to an alternate consideration. 6.10 If such transactions are treated as transfer (Whe....
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....e value of a future property. Therefore, normally, when a person books a flat the price is paid in installments over the period of construction. However, if someone pays entire price in advance he usually gets a very heavy discount. 6.13 The assessee booked the flat in 2010 which was shifted to another flat in 2014 and the possession of second flat was to be obtained in 2018. Therefore, if we give the benefit of indexation on the price paid in advance and also give benefit of discount for paying entire money in advance for second flat, there will be hardly any difference in the price paid by assessee and the registered value of the property. This can be understood with the example. If a person pays says Rs. 100 in first year the value....