The assessee, engaged in construction of a commercial project, entered into agreement to sell flats/offices (which were under construction) and there was no transfer of any land or building or both in favour of buyers in year. Tribunal held that, provisions of S. 43CA are applicable only when there is transfer of land or building or both. Accordingly agreement to sell entered in to under construction flats provision is not applicable. (AY. 2014-2015)
Shree Laxmi Estate (P.) Ltd. v. ITO (2019) 178 ITD 98 ( 2020) 204 TTJ 351(Mum.)(Trib.)
S. 43CA : Transfer of assets-other than capital assets-Full value of consideration-Stock in trade-Agreement value–Stamp valuation-Agreement to sell flats/offices-Under construction-No transfer of land or building–Provision is not applicable. [S. 50C]