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TMI Blog2024 (9) TMI 1333X X X X Extracts X X X X X X X X Extracts X X X X ..... gh a bank account on or before the date of agreement transfer of such immovable property. Thus, the aforesaid provisos carve out exception by taking the stamp duty value as on the date of agreement when the payments have been made through banking channels. AO has stated that allotment letter is not a registered agreement, therefore, the value of the property has to be taken as on the date of sale registration. First of all, when builder gives an allotment letter with terms and conditions and all the rights and the value of purchase is agreed upon and assessee has acted upon by accepting the terms and conditions and starts making the agreed payment, then it is clearly covered under aforesaid proviso to section 56(2)(x). The assessee has agre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act as mandates the registration of the certain transactions which involves transactions of Immovable property". 3 "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that the Ld. CIT(A) has stated that the assessee has deducted TDS on payments made after 01.06.2013. But it is seen from the Para 13 of Assessment order, the TDS was deducted on or after 20.04.2018 only not before that". 3. The assessee has filed as return of income on 30.11.2020 declaring total income of Rs. 41,98,960/-. Brief facts relating to the issue involved is that, assessee has entered into transactions with M.D. Globus Reality Pvt Ltd for purchase of a flat No. 801/ Eighth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red into purchase transaction in the year 2012. Assessee also relied upon the decision of Hon'ble Bombay High Court in the case of PCIT vs. Vembu Vaidyanathan. However, AO rejected the assessee's contention holding that; (i) the agreement for Sale dated 15.01.2020 does not mentions any allotment letter; (ii) Assessee has not registered the agreement or document for allotment from the competent authority as required by provisions of Section 269AB of the Act; (iii) AO prepared chart of payment made on to the seller at page 9 of his order and noted that there is shortfall in the amount of TDS; (iv) the assessee has neither shown cumulative payment in (immovable assets nor shown "Loan and advances given" and also not deducted tax in view of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the course of scrutiny assessment proceedings. The Appellant had also furnished the allotment letter issued by the builder, namely M/s M.D. Globus Realty Pvt. Ltd. encapsulating all the terms, conditions and payment schedules pertaining to the purchase of the property, effectively constituting a binding agreement between the involved parties, which were fully adhered to by the Appellant. The Applicable TDS was also deducted on payments made after 01-06-2013. As the agreement to buy the property was entered into by the appellant on 10/09/2012, i.e., prior to 01-04-2017, the provisions of section 55(2)(x) are not applicable in the case of the Appellant. The decisions of the Jurisdictional Hon'ble Bombay High Court in the case of PCIT-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 29.03.2019 10,00,000 0 10,00,000 12 30.03.2019 9,00,000 -24,000 8,76,000 13 21.09.2020 10,00,000 -7500 9,92,500 Total 1,75,00,000 7,28,550 1,82,28,550 8. The builder also acknowledged the receipt towards payment received for Rs. 1,75,00,000/- for the allotted flat. The said property was registered in financial year 2019-20 and that time read reckoner rate as on date of registration was Rs. 3,63,75,500/-. The AO invoke the deemed provisions of Section 56(2)(x) of the Act the relevant portion of section 56(2)(x) reads as under:- [(x) where any person receives, in any previous year, from any person or persons on or after the 1st day of April, 2017) (a) …… (b) any immovable property, - (A) without consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount payee cheque or by the electronic clearing system through a bank account on or before the date of agreement transfer of such immovable property. Thus, the aforesaid provisos carve out exception by taking the stamp duty value as on the date of agreement when the payments have been made through banking channels. The Ld. AO has stated that allotment letter is not a registered agreement, therefore, the value of the property has to be taken as on the date of sale registration. First of all, when builder gives an allotment letter with terms and conditions and all the rights and the value of purchase is agreed upon and assessee has acted upon by accepting the terms and conditions and starts making the agreed payment, then it is clearly covere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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