TaxTMI 
TaxTMI 
2025 (8) TMI 443
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....relevant to A.Y. 2019-20 and not the A.Y. 2020-21. c. Year of booking of the flat was 30.04.2010 and accordingly transaction pertain to A.Y. 2011-12 and not A.Y. 2020-21, as upheld by the CIT(A). d. Year of Contract was F.Y. 2010-11 and not F.Y. 2019-20. The valuation of Property was Rs. 56,73,953/-. 2. On the facts and circumstances of the case and in law learned CIT(A) erred in not appreciating the fact that as per Sec. 47 of the Indian Registration Act 1908, upon registration of the document, it relates back to the date of execution and accordingly the transaction pertains to A.Y. 2019-20 and not A.Y. 2020-21. On that count the addition made is bad in law is liable to be deleted. 3. On the facts and circumstances of the case and in law the learned CIT(A) erred in not following the Circular No. 471 dated 15.10.1986 and 672 dated 16.12.1993 issued by the CBDT, which are binding to the Income tax department. 4. On the facts and circumstances of the case and in law the learned CIT(A) erred in partially accepting the Valuation Report by considering the valuation as at 23.04.2019 and not considering valuation as on 08.04.2010, and the year ....
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.... view that since there is a difference between the stamp duty value and the value shown on the conveyance deed, hence, provision of section 56(2)(x) are attracted. On show cause notice the assessee submitted that he along with his brother Yogesh R Gadoya, purchased said property both are having 50% share. The property was jointly purchased in the year 2010. The said property is a part of Slum Rehabilitation Project (SRA). The property was booked in the year 2010 and allotment letter dated 30.04.2010 for a total sale consideration of Rs. 54,40,000/-. The assessee made 10% of total sale consideration on 08.04.2010. The final agreement to sale was executed on 05.02.2019 (relevant to A.Y. 2019-20) but agreement was registered only on 23.04.2019. The total consideration in the final agreement is Rs. 99,66,000/-. The developer unilaterally by force increase the cost from original consideration of Rs. 54,40,000/- to Rs. 99,66,000/- under the threat of cancelling the booking. The assessee submitted that transaction was completed in F.Y. 2018-19 relevant to A.Y. 2019-20. The assessee also took plea that part payment of sale consideration was paid in April 2010. Therefore, the cost of Flat/a....
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..... Before, execution of final agreement, the assessee purchased a stamp duty on 19.12.2018 for execution of final agreement to sale. The agreement to sale was finally registered on 23.04.2019. As the assessee has paid part payment of the sale consideration. Therefore, the relevant date for the purpose of valuation of asset under section 56(2)(x) shall be considered as the date of allotment and the assessee may be allowed benefit of First and Second proviso to section 56(2)(x). The Ld. AR of the assessee further submit that there are series of decision of Tribunal wherein it has been consistently held that allotment letter can be considered as agreement to sale for the purpose of section 56(2)(x). Such decisions are rendered on the ratio that allotment letters represents meeting of minds and intention to enter into an agreement for sale, specially where certain payments are made. Such allotment letter is a valid contract as per provisions of Indian Contract Act. As per Maharashtra ownership of flats (Regulation of Promotion and Construction Sale Management and Transfer) Act, allotment letter is recognised as contract. Further, as per section 47 of Registration Act 1908, registered do....
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....9,587/-, as the assessee is 50% owner, thereby addition of Rs. 20,49,793/- was made under section 56(2)(x). However, on appeal before CIT(A), the addition was reduced to 14,20,729/- on the basis of DVO report dated 26.10.2022. 8. Before us, the Ld. AR of the assessee has made three fold submission. In first submission, the Ld. AR of the assessee submits that the value as on 30.04.2010 agreed by the assessee and builder, which is shown the allotment letter should be considered as the assessee has made part payment i.e. 10% of agreed and benefit of First and Second provision of section 56(2)(x) be given. Secondly, the execution of final agreement to sale was made on 05.02.2019, thus, the transaction relates to F.Y. 2018-19 relevant to A.Y. 2019-20. And thirdly the report of DVO for estimating value of asset in 2010 at Rs. 56,73,953/- should be taken into consideration. In our considered view all three contention of the assessee are not tenable, on the peculiar facts of the present case. As the assessee himself has declared value of sale consideration as per final agreement to sale as Rs. 99,66,000/-. Thus, once the assessee himself has shown sale consideration at Rs. 99,66,000/-, ....