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TMI Blog2021 (7) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. The transfer under the provisions of section 43CA is recognized only when a registered document is executed and therefore, in view of the facts and circumstances of the case, since the transfer through sale deed is made during, the previous year relevant to the assessment year under consideration for which the provisions of Section 43CA are applicable, then merely because an agreement has taken placed prior to 01/4/2013 would not take away the transaction from the ambit of the provisions of Section 43CA of the Act. More particularly when the entire sale consideration was not made through account payee cheque at the time of entering into an agreement to sell. See M/S. SPYTECH REALTORS PVT. LTD. VERSUS THE ACIT, CIRCLE-6, JAIPUR [ 2020 (1) TMI 1475 - ITAT JAIPUR] - Decided against assessee. - ITA No. 255/JP/2019 - - - Dated:- 14-7-2021 - Shri Sandeep Gosain, JM And Shri Vikram Singh Yadav, AM For the Assessee : Shri Rohan Sogani (CA) And Shri Rajeev Sogani (CA) For the Revenue : Smt. Monisha Choudhary (JCIT) ORDER PER: SANDEEP GOSAIN, J.M. This is an appeal filed by the assessee against the order of ld.CIT(A)-2, Jaipur dated 25/01/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing on behalf of the assessee has reiterated the same arguments as were raised before the ld. CIT(A) which is contended in para 2.2. of the order 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 bearing on the applicability of Section 43CA. In this regard, attention is drawn to Section 50C which was brought into the statute book w.e.f 01.04.2003. At the time of introduction of the said section situation, similar to the case at hand, arose wherein assessee 's had tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT, Jaipur Bench, in case of Indexone Tradecone (P.) [2018] taxmann.com 174 (Jaipur-Trib.), in which it was held that:- Head Notes: Section .......................................favour of assessee] In view of the above factual and legal position, addition made by the Ld. Assessing Officer deserves to be deleted in to-to: The ld AR has relied on the following judicial pronouncements: (i) Indexone Tradecone (P) Ltd. Vs DCIT (2018) 97 taxmann.com 174(JP Trib) (ii) CIT Vs Shimbhu Mehra (2016) 65 taxmann.com 142 (All) (iii) Bajrang Lal Naredi Vs ITO, ITA No. 327/Ran/2018 order dated 02/01/2020. (iv) Maria Fernandes Cheryl Vs ITO (2021) 123 taxmann.com 252 (Mum Trib) 7. On the other hand, the ld. D/R has submitted that the sale deed took place after the provisions of section 43CA was brought into Statute. Thus the ld. D/R has contended that the AO has rightly made the addition under section 43CA when the assessee has shown the sale consideration less than the Stamp duty valuation. 8. We have considered the rival contentions of both the parties and perused the material placed on record. As per facts of the present case, the assessee fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 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 assessable shall, for the purposes of computing profits and gains from transfer of such asset, be deemed to be the full value of the consideration received or accruing as a result of such transfer: Provided that where the value adopted or assessed or assessable by the authority for the purpose of payment of stamp duty does not exceed one hundred and 91 [ten] per cent of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of computing profits and gains from transfer of such asset, be deemed to be the full value of the consi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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