Case Law Details
Reegal Construction Vs ITO (ITAT Kolkata)
ITAT Kolkata held that as provisions of section 43CA of the Income Tax Act are introduced with effect from 1st April 2014, the said provisions are not applicable to ‘agreement to sell’ entered prior to 1st April 2014.
Facts- During the assessment proceedings, the Assessing Officer (AO) noted that as per the audited accounts, the assessee had shown sale of 12 flats, one office room and four shops (total 17) at a consideration of Rs.3,00,32,750/-. Further, as per the information obtained from the sub-Registrar office, the assessee had sold total 18 properties vide separate 18 registered sale deeds. The Assessing Officer noted that the assessee did not disclose the sale value of one property registered on 21.07.2014 of the sale value of Rs.12,05,200/-. AO further noted that the total stamp duty value of all the properties sold was at Rs.4,96,06,660/-. The total sale consideration mentioned in the sale deed of 18 properties was Rs.3,19,55,150/-. However, the assessee had shown in its books of account a total sale consideration received of Rs.3,00,32,750/- only.
AO, accordingly, applying the provisions of section 43CA of the Act, calculated the difference between the sale consideration shown and the stamp duty value in respect of 17 properties at Rs.1,83,68,710/- and added the same into the income of the assessee u/s 43CA of the Act. He also added the amount of Rs.12,05,200/- on account of concealment of sale consideration relating to the 18th property.
CIT(A) confirmed the additions. Being aggrieved, the present appeal is filed.
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