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TMI Blog2022 (10) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... such and such expenses on behalf of such and such party and such and such property sold during the relevant period. Unless, the assessee proves its case with necessary evidences, the claim of the assessee cannot be accepted, because, if you go through the unique entry passed by the assessee in the books of accounts, in our considered view, the assessee has adopted a tool to nullify the effect of provisions of Sec.43CA of the Act. In one side, the assessee tried to comply with provisions of Sec.43CA and on the other side nullified the effect with corresponding debit to expenses account without any details. CIT(A) without appreciating these facts deleted the additions made by the AO on different grounds, although, the case of the AO was that the assessee has not substantiated expenses debited under the head business development on sales expenses - we set aside the order of the CIT(A) and restored the issue to the file of the AO and direct the AO to re-examine the case of the assessee in light of claim of the assessee that it has incurred certain expenses as per oral understanding with purchasers. The assessee is directed to furnish necessary evidences before the AO to justify it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offered to tax by the assessee is accepted by the Assessing Officer, the lower sale consideration should also be accepted for the reason that the project got delayed and the expenditure incurred by the assessee towards stamp paper etc., is allowable is correct? 3. Whether the CIT(A) is correct in holding that tax can be levied on real income and since the AO invoked the provisions of Sec. 43CA r.w.s.50C, the Assessing Officer ought to have referred the plots for valuation when there is no request from the assessee? 4. Whether the CIT(A) is correct in observing that it is not clear as to how the Assessing Officer arrived at the conclusion that the assessee declared the sale consideration as per Sec. 43CA as the said fact is evident from the records? 5. Whether the CIT(A) is correct in allowing the expenditure when the assessee declared the sale consideration as per the provisions of sec. 43CA but claimed an amount equivalent to the difference in sale consideration received as expenditure in all the cases where the consideration received is less than the value as per Sec. 43CA? 5. Whether the CIT(A) is correct in holding that the Assessing Officer did not que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO, however, was not convinced with the explanation of the assessee and according to the AO, the assessee has followed a unique method of accounting, whereby, it had nullified the effect of provisions of Sec.43CA of the Act, which is evident from the fact that the difference between actual consideration received and guideline value of the property has been accounted in the books of accounts as sale consideration in terms of sec.43CA of the Act. However, a similar amount has been debited to business development on sales expenses, thereby, nullified the sales declared in terms of provisions of Sec.43CA of the Act. Therefore, rejected the arguments of the assessee and disallowed business development on sales expenses amounting to Rs.1,83,11,675/-. 6. Being aggrieved by the assessment order, the assessee preferred an appeal before the Ld.CIT(A). Before the Ld.CIT(A), the assessee has reiterated its arguments and submitted that as per contractual obligation between the firm and buyers, certain expenses were borne by the firm and the same has been debited to business development on sales expenses. Therefore, the same needs to be allowed as deduction. The Ld.CIT(A) after considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant facts has rightly deleted the additions made by the AO and their orders should be upheld. 9. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. The provisions of Sec.43CA of the Act, deals with full value of consideration to be adopted for the purpose of sale of immovable property, if such immovable property is in the nature of stock in trade or business asset. As per the said provisions, if guideline value of the property is higher than the actual consideration, then, the guideline value for the purpose of payment of stamp duty should be the full value of consideration. The assessee is in real estate business and formed residential and commercial plots and said plots are stock in trade for the purpose of business of the assessee. Therefore, the assessee needs to comply with provisions of Sec.43CA of the Act. In fact, the assessee has complied with provisions of Sec.43CA of the Act, as per which, wherever actual consideration received for transfer of property is less than the guideline value, the assessee has accounted difference between actual consideration and guideline value as sales income. To th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain expenses as per oral understanding with purchasers. The assessee is directed to furnish necessary evidences before the AO to justify its case. 10. The next issue that came up for our consideration from Ground No.7 of the Revenue s appeal is deletion of disallowance of gift on gold coins amounting to Rs.49,744/- Rs.78,366/- respectively. The AO has disallowed gift expenditure u/s.40(a)(ia) of the Act, for non-deduction of TDS. The Ld.CIT(A) deleted the additions made by the AO on the ground that the prizes given by way of incentives to purchasers is below threshold limit of taxability at source and hence, needs to be allowed in terms of provisions of Sec.40(a)(ia) of the Act, with a direction to AO to verify the claim of the assessee. 11. Having heard both the sides and considered the materials available on record, we find that the Ld.CIT(A) has set aside the issue to the file of the AO with a direction to re-examine the claim of the assessee in light of arguments of the assessee that prize money is in excess of Rs.10,000/- and above threshold of taxability at source in respect of Gadapam plots and same needs to be allowed in terms of Sec.40(a)(ia) of the Act, and if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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