TMI Blog2022 (1) TMI 1417X X X X Extracts X X X X X X X X Extracts X X X X ..... is being considered. Hence, the reason for CIT(A) in upholding the addition is not as per the facts on record. In any case, we note that this is assessees plea that section 43CA was introduced w.e.f. 01.04.2013 and the agreement under consideration were entered into prior to 31.03.2013.This is assessees plea that difference is only 5% between the ready recokner rate and sale consideration. Hence, this is assessees plea that the same has to be ignored on the touchstone of Krishna Enterprises vs ACIT[ 2016 (12) TMI 52 - ITAT MUMBAI] - Thus issue decided in favour of the assessee. - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER For the Assessee : None For the Department : Shri Anil Gupta ORDER PER SHRI SHAMIM YAHYA (AM): ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In response, the AR filed a reply dated 15.12.2016, ...From the above mentioned details it can be evident that the allotment letters in respect of sale of shops can be correlated with the bank statement and ledger accounts reflecting receipt of payment from them. Since, the contract/allotment letter are substantiated with the tank statement, the market value as on the date of allotment and not the market value as on the date of registered agreement in terms of provision of section 43CA. The difference is only in two shops namely shop no. 408 and 509 in respect of Andheri project aggregating to Rs 8,26,329/- only. Since, there is a marginal difference in two cases as reflected in the chart and the same is less than, 5% of the value. Even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment towards the purchase of the shops were received from the buyers. In view of these, shortfall in consideration received for shop nos. 408 and 509 vis-avis their fair market value derived from adoption of ready reckoner values is worked out at Rs 4,33,575/- and Rs 3,92,754/- respectively. Thus the total amount of Rs 8,26,3297- is added back to the total income of the assessee. 6. Upon assessee s appeal, ld.CIT(A) upheld the addition made by the AO. However, in upholding the addition by the AO, he has held as under:- Appros to the above, I find that the fulcrum of the main contention of the appellant is that, according to the appellant, the various properties in respect of which the provision of section 43CA have been applied by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d obligations of the parties concerned. Therefore, only because certain amounts were transacted in part performance of the agreement to sell, it was only in the year of the ultimate registration that the contract of sale gets fructified. On the execution of the formal agreement, the obligations of the parties will crystalize, subject to any supervening and extenuating circumstances. No such circumstance is proved to be in existence in the instant appeal and this issue is of immense significance. Moreover, I also find that, in view of the above, it is crystal clear that the sale gets culminated in the year of registration, formally of the agreement to sell and till such time, it is always possible that either of the parties to the said co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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