\u00a0<\/p>\n
Assessee, a real estate developer, sold four commercial properties in July 2013 and received full sale consideration through banking channels, simultaneously transferring possession of the premises to buyer. Income arising from the transaction was offered to tax in assessment year 2014-15. However, the agreement to sell was executed on 31-12-2014 and registered on 3-3-2015. Assessing Officer invoked provisions of section 43CA for the relevant assessment year, taking the registration date as the operative date of transfer and made an addition on account of the difference between the stated consideration and stamp duty value. CIT A) affirmed the order of the Assessing Officer. On appeal, the Tribunal held that once possession was handed over in part performance of a written agreement for consideration and the transferee was willing to perform their obligations, the transaction would qualify as a transfer for the purposes of taxation and formal registration of the agreement at a later date, being merely a procedural formality, could not defer taxability of the transaction. Furthermore, the entire consideration was received more than one year before the date of agreement, and the transaction was already taxed in the correct year, i.e., assessment year 2014-15. Addition made under section 43CA in assessment year 2015-16 was unsustainable in law and was to be deleted (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.43CA: Transfer of assets-other than capital assets-full value of consideration-stock in trade-Agreement value-Stamp valuation-Registration agreement at a later date-Transaction was completed in an earlier year and offered to tax-Addition cannot be made in the year of registration. [S. 2(47)(v), S.50C, Transfer of Property Act, 1882, S.53A]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61139","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fU7","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=61139"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61139\/revisions"}],"predecessor-version":[{"id":61140,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61139\/revisions\/61140"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}