2026 (4) TMI 1474

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....d u/s. 143(3), dated 30.12.2018 by the ACIT, Circle-1, Nagpur for the Assessment Year 2016-17 (AY). 2. The sole issue raised by the Revenue in this appeal is, Ld.CIT(A) is not correct in deleting the addition of Rs. 5,56,72,000/- made by the Ld. Assessing Officer (AO) u/s. 43CA of the Act. 3. Facts of the case in brief are that assessee is company, engaged in the business of civil construction and development of infrastructure projects. It filed its e-return of income for A.Y. 2016-17 furnished on 17.10.2016 declaring total income of Rs. 18,32,36,180/-. Case was selected for scrutiny through CASS and statutory notices u/s. 143(2) & 142(1) of the Act were issued and served upon the assessee. In response to the notices issued, assessee ....

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....n intangible immovable property and directed the Ld. AO to delete the addition of Rs. 5,56,72,000/-. Aggrieved, Revenue is in appeal before this Tribunal. 5. Ld. Departmental Representative (DR) strongly relied upon the assessment order and submitted that Ld. AO has rightly invoked the provisions of section 43CA of the Act. It was argued that assessee has transferred valuable rights in immovable property in the form of TDRs at a consideration significantly lower than the stamp duty value/market value. Therefore, the difference was rightly brought to tax to prevent undervaluation of transactions. The Ld. DR contended that TDRs are intrinsically linked to land and building and hence fall within the scope of "land or building or both" as en....

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.... vs. M/s. Triple Securities Pvt. Ltd. in ITA No.2270/MUM/2021, dated 20.12.2022 (ITAT - Bom.) ii) Romiel Samuel vs. ITO in ITA No. 437/MUM/2016, dated 13.06.2018 (ITAT - Bom.) iii) CIT vs. Greenfield Hotels & Estates (P) Ltd. [2016] 389 ITR 68 iv) Noida Cyber Part (P) Ltd. vs. ITO [2021] 186 ITD 593 7. We have considered the rival submissions and perused the material on record. The issue for adjudication is whether section 43CA applies to transfer of TDRs. We find that section 43CA specifically applies to transfer of an asset, being land or building or both, held as stock-in-trade. In the present case, the subject matter of transfer is TDR, which is a development right and not land or building per se. Deeming p....