Case Law Details
Vinay Ramchandra Somani Vs ACIT (ITAT Mumbai)
We notice that the assessee has sold the residential land and entered into a separate deal with the buyer for allotment of a flat in the up–coming project. The part sale consideration received by the assessee as payment in kind. In that process, the assessee entered into an escrow arrangement with Satguru Corporate Services Pvt. Ltd., against the allotment of new flat. As per escrow arrangement, the assessee made full payment against the allotment of the flat.
Due to certain dispute with the builder, the builder could not complete the flat against which the assessee issued a public notice in the newspaper and also filed a suit in the Hon’ble Jurisdictional High Court against the builder. The assessee also filed a copy of the order dated 16th June 2014, passed by the Hon’ble Jurisdictional High Court and also filed a copy of public notice in the newspaper as part of paper book from Page–155–164 of the paper book.
From the record, it is clear that the assessee has received part of sale consideration as in kind for allotment of flat for which the value was determined and kept under escrow arrangement. From the record, it is also given to understand that it has not received this portion of the sale consideration up to now since there is a separate arrangement was entered with the buyer of the land and the builder for consideration and allotment of the disputed flat which later ended up in dispute. Because of dispute, the builder has refused to confirm to the Assessing Officer that there is no arrangement and allotment of the aforesaid flat to the assessee.
However, the documents submitted before us clearly indicate that the stand of the builder is not correct and proper. Considering the decision of the Hon’ble Jurisdictional High Court which was filed before us clearly indicate that there exist dispute with regard to above flat.
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