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TMI Blog2024 (7) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... en over the possession of lawn or building or both for the purpose of the development in terms of the relevant development agreement or MOU for development of a property. The assessee has not purchased any immovable property but has only acquired development rights and considering the facts of the case, in light of the decision of in the case of Seshasayee Steels (P) Ltd [ 2019 (12) TMI 702 - SUPREME COURT] we do not find any reason to interfere with the findings of the ld. CIT(A). Accordingly, the effective grounds raised by the revenue are dismissed. - Shri Narendra Kumar Billaiya, Hon ble Accountant Member And Shri Raj Kumar Chauhan, Hon ble Judicial Member For the Assessee : Shri Suchek Anchaliya Ms. Vaishali More, A/Rs For the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 66,53,76,000/- and Rs. 5,81,63,250/ be not treated as income from other sources and added back to the total income of the assessee. 6. The assessee filed a detailed reply stating that it is engaged in construction activity and undertakes SRA Projects by entering into development agreements with the owner/landlords whereby the assessee will develop the land by constructing buildings thereon and in lieu of such development rights being acquired, the assessee will transfer certain percentage of the constructed area of the owners/landlords in lieu of the consideration for acquiring such rights and then retain the remaining portion for sale in the open market. 7. Pursuant to its business activities, the assessee has undertaken such SRA Proje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We find that the AO has drawn support from the provisions of Section 56(2)(x) of the Act. In our understanding of the law, Section 50C of the Act applies to the seller whereas Section 56(2)(x) applies of the buyer. Accordingly, immovable property is restricted only to land or building or both but not applicable to a developer who has taken over the possession of lawn or building or both for the purpose of the development in terms of the relevant development agreement or MOU for development of a property. It would not be out of place to refer to the judgment of the Hon ble Supreme Court in the case of Seshasayee Steels (P) Ltd. vs. ACIT (supra), wherein the Hon ble Court interalia held as under:- In order that the provisions of section 53A o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e object of section 2(47)(vi) appears to be to bring within the tax net a de facto transfer of any immovable property. The expression 'enabling the enjoyment of' takes colour from the earlier expression 'transferring', so that it is clear that any transaction which enables the enjoyment of immovable property must be enjoyment as a purported owner thereof. The idea is to bring within the tax net, transactions, where, though title may not be transferred in law, there is, in substance, a transfer of title in fact. [Para 16] Given the test stated in paragraph 25 of the aforesaid judgment, it is clear that the expression 'enabling the enjoyment of' must take colour from the earlier expression 'transferring', so th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yee bank draft or by use of electronic clearing system through a bank account [or through such other electronic mode as may be prescribed], on or before the date of agreement for transfer of such immovable property: Provided also that where the stamp duty value of immovable property is disputed by the assessee on grounds mentioned in sub-section (2) of section 50C, the Assessing Officer may refer the valuation of such property to a Valuation Officer, and the provisions of section 50C and sub-section (15) of section 155 shall, as far as may be, apply in relation to the stamp duty value of such property for the purpose of this sub-clause as they apply for valuation of capital asset under those sections .. . 11. As mentioned elsewhere, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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