BASERA HOUSING,AGRA V. INCOME TAX OFFICER, WARD 1(1)(1), AGRA

ITA 541/AGR/2024

AI Insights

The case involves M/s Basera Housing, a real estate company, which appealed against the order of the Commissioner of Income Tax (Appeals) confirming the addition of Rs.10.52 Lacs to its income under Section 43CA of the Income Tax Act. This addition was initially made by the Assessing Officer, arguing that the expenditure claimed by the assessee reduced the net sales proceeds below the stamp duty value, violating Section 43CA. The Tribunal referenced a similar case, ACIT vs. Mahavir Infracon Pvt. Ltd., where it was held that such expenditure is allowable as it does not affect the sales value as per the stamp duty valuation authority. Consequently, the Tribunal deleted the addition and allowed the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25784 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: ACIT vs. Mahavir Infracon Pvt. Ltd. (ITA No.92/Rpr/2021 dated 10-04-2023)
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SHRIVASTAVA LD.
• Assessee Lawyers: ANURAG SINHA LD
• Keywords: Revenue expenditure; Sale consideration of property below Jantri Value
• Section: 143(3); 43CA

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No.541/Agr/2024 (िनधाŊरणवषŊ / Assessment Year: 2017-18) M/s Basera Housing Opp. Allahabad Bank Near JP Hotel, Agra - 282006 बनाम/ Vs. ITO-1(1) Agra ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAMFB-4150-G (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Anurag Sinha (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Shri Shailendra Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 20-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30-05- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 09-12-2019. The registry has noted delay of 129 days in the appeal which stand condoned. The sole ground urged before us is addition u/s 43CA for Rs.10.52 Lacs. Having heard rival submissions and upon perusal of case records, the appeal is disposed- off as under. 2 2. The assessee is stated to be engaged in real estate activities. The assessee sold 8 flats. In 5 cases, the registry expenses were paid by the assessee himself for Rs.10.52 Lacs which was claimed as revenue expenditure. The Ld. AO held that allowing the same would reduce the net sales proceeds to that extent and the same would be fall below the stamp duty value of these properties which would be in violation of Sec. 43CA. The assessee incurred the expenditure to reduce its tax liability. Accordingly, the said amount was added to the income of the assessee in terms of provisions of Sec.43CA and 37(1). The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us. 3. We find that impugned issue stood covered in assessee’s favor by the order of Raipur Tribunal in the case of ACIT vs. Mahavir Infracon Pvt. Ltd. (ITA No.92/Rpr/2021 dated 10-04-2023) holding that deduction of stamp duty would be allowable as it would not affect the sales value as per stamp duty valuation authority. The bench, in para-8 of the order, held that the expenditure was incurred wholly and exclusively for the purpose of business and therefore, it would be an allowable deduction u/s 37(1). The assessee sold the properties at market value as determined by the stamp valuation authority and received entire sale consideration as mentioned in the sale deeds and therefore, there could no occasion to trigger the provisions of Sec.43CA. Taking the same view, we delete the impugned addition. No other ground has been urged in the appeal. 3 4. The appeal stand partly allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) Ɋाियक सद˟ /JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER Dated: 28-03-2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AGRA "