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TMI Blog2024 (11) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... d agreement was ultimately registered in the year under consideration, in light of the provisions of section 43CA(3) we are of the considered view that the stamp duty value as on the date of the agreement for sale, i.e. 30/04/2011 be considered as the full value of consideration for computation of profits and gains of the assessee from the transfer of Flat. Further, the provisions of section 43CA(4) of the Act are also satisfied in the present case, as the earnest money of INR 2 lakhs was paid by the purchaser vide cheque No. 272834 dated 26/04/2011. Consequently, we set aside the impugned order and delete the addition made by considering the stamp duty value on the date of registration of the agreement. We direct the AO to compute the profits and gains from the transfer of the impugned flat in light of the provisions of section 43CA(3) of the Act by considering the stamp duty value as on the date of agreement for sale, i.e. 30/04/2011. We further direct that no order shall be passed without affording reasonable opportunity of being heard to the assessee. Accordingly, grounds raised by the assessee are allowed for statistical purposes. - Shri Amarjit Singh, Accountant Member And ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bur, Mumbai 400089. 38,60,000 60,73,272 2213,272 4 C-702, Anand Bldg, Tilak Nagar Anand C-op, Housing Society, Bldg, No.2, Tilak Nagar, Chembur, Mumbai 400089. 20,00,000 22,45,000 2,45,000 Total 77,42,272 5. Accordingly, the assessee was asked to show cause as to why the sum of INR 77,42,272 should not be considered as its income from the business or profession under section 43CA of the Act. In response, the assessee uploaded its reply on the portal. After considering the submissions filed by the assessee, the Assessing Officer ( AO ) vide order dated 25/12/2019 passed under section 143(3) of the Act disagreed with the submissions of the assessee in respect of Flat No. C-1103. The AO held that on the one hand, the assessee submitted that the flat was allotted to the party in the years 2009 and 2010, while on the contrary, the assessee submitted a copy of the allotment letter, in respect of the same flat, i.e. C-1103, which dates to 05/05/2011, thus contradictions raise doubts on the genuineness of the assessee s claim. The AO further held that the assessee had not provided a copy of the bank account statement reflecting the transaction and a copy of the ready reckoner for the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t proceedings. Be that as it may, the primary contention of the assessee is that since the allotment letter in respect of Flat no.C-1103 was issued on 05/05/2011 and the agreement for sale was executed between the parties on 30/04/2011, therefore the stamp duty rate as on that date should be considered to be the full value of consideration for the purpose of section 43CA of the Act. 8. In order to decide the issue at hand, it is relevant to analyse the provisions of section 43CA of the Act, which reads as follows: - 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. (2) The provisions of sub-section (2) and sub-section (3) of section 50C shall, so far as may be, apply in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year under consideration. 11. From the perusal of the agreement for sale executed on 30/04/2011, forming part of the paper book from pages 81-161, we find that the assessee agreed to sell Flat no.C-1103 to Mr. Arun C. Rathod and Mrs. Sapna Arun Rathod for a total sum consideration of INR 47,30,000. In this regard, earnest money of INR 2 lakh was paid by the purchaser vide cheque No. 272834 dated 26/04/2011, and the balance consideration amounting to INR 45,30,000 was agreed to be paid as per the schedule of payment provided in the agreement for sale, on pages 97-113 of the paper book. We further find that the agreement for sale was executed on the stamp paper dated 29/04/2011. Subsequently, on 31/03/2016 supplementary agreement was signed between the parties for payment of the additional consideration of INR 2 lakh in respect of the additional carpet area of 107 ft , thus resulting in a total area of 758 ft . From the said supplementary agreement, we find that it refers to the agreement for sale dated 30/04/2021 and further mentions that the building is in the initial stage of construction and due to changes in the policy of the Municipal Corporation, the developer is required ..... 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