Gurukrupa Developers Vs PCIT-32 (ITAT Mumbai)
The assessee, a builder and developer, challenged the order passed by the learned CIT under section 263 of the Income Tax Act, 1961 in respect of Assessment Year 2014-15. The assessee had filed its return declaring total income of Rs. 6,82,55,390/- on 30.09.2014, following which the assessment was completed under section 143(3) at an assessed income of Rs. 6,83,55,390/-.
The learned CIT initiated revision proceedings on the ground that the stamp duty valuation exceeded the total consideration and, therefore, the higher stamp duty valuation ought to have been considered for taxation under section 43CA. According to the learned CIT, the Assessing Officer had overlooked this aspect and had completed the assessment erroneously and prejudicially to the interests of the Revenue.
Before the CIT, the assessee submitted that although registration of the flats/shops took place during the relevant financial year, the allotment, booking and agreement had occurred in earlier years. It contended that the agreement value at the time of allotment was higher than the applicable Ready Reckoner value and that the subsequent registration resulted in a higher stamp duty value. The assessee also submitted that consideration or booking amounts had been received through banking channels on or before the relevant dates.
