SUYOG DEVELOPMENT CORPORATION LIMITED, PUNE, MAHARASHTRA V. ASSISSTANT COMMISSIONER OF INCOME TAX, PUNE

ITA 820/PUN/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8476 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 08-02-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 12-07-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “B” BENCH : PUNE : [VIRTUAL HEARING] BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, , ACCOUNTANT MEMBER I.T.A.No.820/PUN./2023 [E-APPEAL] Assessment Year 2016-2017 Suyog Development Corporation Limited, Parshwa Bldg., Office No.27, Pune City, Pune, Market ZYard S.O. (Pune) PIN 411037.Maharashtra. PAN AAICS6329R vs. The ACIT, Circle-6, Pune. Maharashtra. (Appellant) (Respondent) For Assessee : Shri Ankur Mehta and Shri Sajjan Tarunwar For Revenue : Shri Sourabh Nayak, Addl. CIT Date of Hearing : 09.02.2024 Date of Pronouncement : 28.02.2024 ORDER PER SATBEER SINGH GODARA, J.M. : This assessee’s appeal for assessment year 2016- 2017, arises against the National Faceless Appeal Centre [in short “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/ 2023-24/1052994258(1), dated 19.05.2023, involving proceedings u/s. 143(3) of the Income Tax Act, 1961 (in short “the Act”). Heard both the parties. Case file perused. 2. It emerges during the course of hearing that the assessee herein challenges correctness of both the learned lower authorities action making sec.43CA addition of 2 I.T.A.No.820/PUN./2023 Rs.31,89,249/- in the course of assessment dated 17.12.2018 as upheld in the NFAC’s order. 3. We now advert to the rival stands raised in the instant case. The assessee is admittedly engaged in real estate development business. It had transferred five residential units treated as stock-in-trade which carried difference between actual sale price and stamp value thereof as exceeding 10%. This made both the learned lower authorities to invoke sec.43CA of the Act. The assessee’s stand from the very beginning is that it is the date of the booking of the said residential units which ought to be treated as the clinching date of relevant agreement(s) as per sec.43CA(3) and (4) whereas the Revenue’s plea before us is that the relevant factor herein is the date of actual transfer(s) in the previous year only. 3. We have given our thoughtful consideration to the foregoing rival stands and find no reason to accept either parties submissions in entirety. This is for the precise reason that neither the assessee has filed all the relevant details indicating that the corresponding booking dates in fact satisfy the rigor of “agreement” u/sec.43CA(3) and (4) nor the department has made a statutory reference to the DVO under sub-sec.(2) thereof to be read in light of sec.50C(2) of the Act made applicable mutatis mutandis herein by the legislature. Case law Sunil Kumar Agarwal vs. CIT [2015] 372 ITR 83 (Cal.) 3 I.T.A.No.820/PUN./2023 (HC) has settled the issue that such a reference ought to be mandatorily made even if the assessee concerned fails to make a prayer during the course of assessment. Faced with the situation, we deem it appropriate to restore the assessee’s instant sole substantive grievance back to the learned Assessing Officer for his afresh appropriate adjudication as per law preferably within three effective opportunities of hearing. Ordered accordingly. 4. This assessee’s appeal is allowed for statistical purposes in above terms. Order pronounced in the open Court on 28.02.2024. Sd/- Sd/- [AMARJIT SINGH] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated February, 2024 VBP/- Copy to 1. The appellant 2. The respondent 3. The NFAC, Delhi 4. The CIT, Pune concerned. 5. D.R. ITAT, “B” Bench, Pune. 6. Guard File. //By Order// //True Copy // Assistant Registrar, ITAT, Pune Benches, Pune.