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2021 (6) TMI 614 - AT - Income TaxAddition u/s 43CA - consideration received in respect of agreements to sale executed during the year in respect of redevelopment project under construction - HELD THAT:- Additional area has been sold by the assessee pursuant to the development agreement which has been entered into by the assessee during financial year 2010-11 which is prior to introduction of Sec.43CA. The provisions of Sec.43CA has been inserted by the legislatures only with effect from 01st April, 2014 and the same would not apply to any such agreements as entered into by the assessee in earlier years as held in Pr. CIT V/s Swananda Properties (P.) Ltd. [2019 (9) TMI 1270 - BOMBAY HIGH COURT] The Hon’ble Court has held that the provisions of Sec.43CA would not have retrospective application and accordingly, do not apply to agreement executed prior to its introduction. The ratio of this decision is squarely applicable to the case of the assessee. Therefore, the impugned additions could not be sustained in the eyes of law on this point alone.
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