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2023 (11) TMI 928 - AT - Income TaxAddition u/s 43CA - agreement price is lower than the stamp duty value on the first date of payment made by purchaser by any other mode other than cash - HELD THAT:- Assessee’s sale price and market value does not exceed in this case more than 10% hence no addition against the transaction with Gaurav Samruddhi, Flat No. SAM/A/103 can be made. Same is the situation for Flat No. EXC/3/204, Serial No. 4, Table-2, Project Name “Gaurav Excellency”, No addition can be made The view of the High Court of Punjab & Haryana in Chandani Bhuchar [2010 (1) TMI 731 - PUNJAB AND HARYANA HIGH COURT] with respect to the deeming provision of section 50C of the Act is that onus of proof lies on the Department/Revenue to bring on record any evidence to the effect that higher amount of sale consideration had passed on to the seller from the buyer in addition to the amount of sale consideration recorded in the deed. The amount at which valuation has been done by the stamp authorities could not be taken as actual sale consideration and the value shown in the sale deed has to be accepted. The circle rates as stipulated u/s 50C of the Act cannot be sole concluding reason to hold that there is an understatement of sale consideration and adopt the valuation done for the purpose of stamp duty. In view of above discussions revenue has failed to discharge its burden of proof that higher amount of sale consideration had passed on to the seller from the buyer in addition to the amount of sale consideration recorded in the deed. On the other hand, it is also found that assessee also did not come forward with relevant documents which can help in establishing the fact that no cash payment element is involved to take the advantage of position as provided in section 43CA (3) r.w.s. 43CA (4) of the Act. In view of this, we store the matter back to the file of Jurisdictional AO for verification of balance transactions of Table-2 at Page No.6, i.e., at serial no. 1, 2, 3, 5, and 6. Ground Nos. 1, 2, 3, 4 and 5 are partly allowed for statistical purposes. Taxability of deemed rent u/s. 22 r.w.s. 23 of the Act. AO by deputing an Income Tax Inspector determined ALV as prescribed in section 23 of the Act for the purposes of section 22 - HELD THAT:- As per this sub-section, any property which has been held as stock in trade and has not been let-out during the year, then the Annual Value of such property shall be taken as Nil up to a period of one year from the end of the financial year in which the certificate of completion of construction is obtained. The appellant has submitted that the said amendment is applicable w.e.f. A.Y. 2018-19 and therefore the income can be charged only from A.Y. 2018-19 onwards. CIT (A) and AO relied upon following case laws to substantiate their view on the taxability of deemed rent on unsold stock of flats hold by assessee as relying on ANSAL HOUSING & CONSTRUCTION LIMITED VERSUS ASSISTANT COMMISSIONER OF INCOME TAX [2018 (1) TMI 805 - DELHI HIGH COURT], M/S ANSAL HOUSING AND CONSTRUCTION [2016 (11) TMI 208 - DELHI HIGH COURT] and M/S. SANE & DOSHI ENTERPRISES [2015 (4) TMI 882 - BOMBAY HIGH COURT] - As assessee was liable to pay income tax on the annual letting value of unsold flats owned by it under the head 'income from house property' - Decided against assessee.
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