TMI Blog2024 (4) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... said flat as unexplained investment u/s 69 and charged to tax u/s 115BBE of the Act. As submitted Development agreement was executed by and between the owner of the building owners of the building agreed to grant development rights in respect of the building and agreed to permit the developer to develop the property on terms and conditions mentioned therein, wherein the developer was required to provide permanent alternate accommodation to the tenants/occupants and as mandated by Maharashtra Housing and Area Development Authority (MHADA), the developer entered into permanent alternate accommodation agreement with the tenants/occupants. HELD THAT:- Admittedly, no notice has been issued to assessee/petitioner calling upon assessee to show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and under either of these two clauses the stamp duty value could be treated as deemed income. By not specifying whether Section 56(2)(x)(a) or Section 56(2)(x)(b) of the Act was applicable, the A.O. first of all has not given reasonable opportunity of showing cause to the assessee. Assessee would be totally unaware of the grounds which had prompted the A.O. to arrive at a prima facie conclusion and issue show cause notice. The power that the A.O. had was required to be executed properly. Moreover in the assessment order that is impugned in the petition, the A.O. has chosen to give Section 56(2)(x), a go by and treat the stamp duty value of the flat as from unexplained source under Section 69 of the Act. There is no reference to Section 56 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding and agreed to permit the developer to develop the property on terms and conditions mentioned therein. Under the development agreement, the developer was required to provide permanent alternate accommodation to the tenants/occupants and as mandated by Maharashtra Housing and Area Development Authority (MHADA), the developer entered into permanent alternate accommodation agreement with the tenants/occupants and registered the same with the Sub-Registrar of Assurances. 5. An intimation of disapproval was issued by the Bombay Municipal Corporation on 9th December 2015 and the amended plans for the new building were approved on 29th November 2017. 6. Petitioner along with his brother were tenant since 1st April 2013 of a flat on the first f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hence entitle to deduction under Section 54F of the Act. Petitioner also filed copies of rent receipt, application to Brihanmumbai Electric Supply and Undertaking (BEST) for fresh electric connection, electricity bills etc. 7. Respondent No. 3 thereafter passed the impugned assessment order dated 29th September 2022. Before that petitioner had also filed additional reply dated 12th September 2022 giving details of certain general precedents in support of petitioner s case. The impugned order dated 29th September 2022 was passed in which Respondent No. 3 proposed to treat the entire stamp duty value of the said flat as unexplained investment under Section 69 of the Act and charged to tax under Section 115BBE of the Act. 8. Admittedly, no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value as deemed income of assessee under clause (a) or clause (b) of Section 56(2)(x) of the Act. This is because both are separate provisions and under either of these two clauses the stamp duty value could be treated as deemed income. By not specifying whether Section 56(2)(x)(a) or Section 56(2)(x)(b) of the Act was applicable, the A.O. first of all has not given reasonable opportunity of showing cause to the assessee. Assessee would be totally unaware of the grounds which had prompted the A.O. to arrive at a prima facie conclusion and issue show cause notice. The power that the A.O. had was required to be executed properly. Moreover in the assessment order dated 29th September 2022 that is impugned in the petition, the A.O. has chosen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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