9911796707
TMI Blog2024 (10) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... 019-20. We further note that the assessee has offered to tax on the undivided share of land and that the developer offered as its income from the sale of three (3) flats. Therefore, on the same transaction (of the 3 apartments in question), the Revenue can t add the same again in the hands of the assessee, which will tantamount to double taxation. In this case, the assessee is the landlord who entered into JDA/PoA with the developer and agreed to give 45% of built up area along with UDS, for 55% of the built up area to the assessee. Accordingly, separate sharing agreement based on the built up area in proportionate to the agreed percentage of share was entered into and accordingly, the flats earmarked for the developer and the assessee resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,623/- being interest income earned during the relevant assessment year. Later, the case was re-opened on the allegation that there were six (6) instances of sales of flats which were not considered for computation of total income of the assessee and which has escaped assessment. Even though, the assessee objected to re-opening of assessment, and brought to his notice that he (the assessee) being the landlord of immovable property, had entered into Joint Development Agreement (hereinafter in short JDA ) with the developer to built flats, and agreed to give him (developer) 45% of built up area along with undivided share [UDS] of immovable property, and in exchange, assessee would obtain 55% of the built up area of the flats built in that imm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filed objection before the Ld.DRP, which was rejected on 19.12.2023 and pursuant to the directions of the DRP, the AO passed the final assessment order u/s. 144C(13) r.w.s.147 of the Act on 06.01.2024 making an addition of Rs. 8,26,79,878/-. S.no Name of Party Sale of UDS Construction Value TOTAL in Rs 1 Kenny Jacob 44,00,000 2,62,70,969 3,06,70,969 2 Usha Ramakrishnan 38,12,500 1,92,65,924 2,30,78,424 3 Shyam Sundar Chandramohan 44,56,250 3,71,42,985 4,15,99,235 Total 1,26,68,750 8,26,79,878 9,53,48,628 5. Aggrieved, the assessee is in appeal before this Tribunal. 6. In this regard, we note that the assessee is the owner of property at Traveler s Bungalow Road on which the apartments SHREE have been built. The assessee had entered into a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om sale of these three (3) flats during the AY 2018- 19. 7. However, the case of the assessee is that ownership of the land belong to the assessee. But as per the JDA with the developer, the developer had to construct total 27 apartments; and out of it, fourteen (14) flats for the owner (assessee) and thirteen (13) flats to the developers in the ratio of 55% : 45% respectively. The dispute is regarding sale consideration in respect of three (3) flats viz., F1, E3 J1, which flats/apartments is noted to be earmarked as share of the developer; and they have confirmed this fact to the AO vide letter dated 19.11.2021 that as per the terms of JDA dated 05.10.2012 for Project Shree it being the developer of the project, the transaction of flats in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 apartments in question), the Revenue can t add the same again in the hands of the assessee, which will tantamount to double taxation. 10. In this case, the assessee is the landlord who entered into JDA/PoA with the developer and agreed to give 45% of built up area along with UDS, for 55% of the built up area to the assessee. Accordingly, separate sharing agreement based on the built up area in proportionate to the agreed percentage of share was entered into and accordingly, the flats earmarked for the developer and the assessee respectively. The flats in question fell into the share of the developer and the developer has duly offered the tax on the entire sale consideration as turnover of the developer and hence, the same can t be consid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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