ITA 924/BANG/2026

Parties Involved

Facts Summary

The assessee, SREENIVAS NARAYAN, engaged in the business of building and construction, did not file his return of income for the assessment year 2018-19. Based on information available under the NMS category of the Insight Portal, a notice under section 148 of the Income Tax Act was issued on 04/04/2022. In response, the assessee filed his return of income, declaring a total income of ₹ 4,68,430. During the assessment proceedings, the assessee submitted that he sold a duplex flat for a sum of ₹ 1,04,17,500, in respect of which the sale deed was registered in June 2017, and the purchaser recovered TDS on the sale consideration at 1%, i.e. ₹ 1,04,175. The Assessing Officer disagreed with the assessee's submission that the stamp duty value in the year 2014 should be taken into consideration for the purpose of computation of profits and gains from transfer of immovable property under section 43CA of the Act. The Assessing Officer held that the stamp duty value on the date of registration of the sale deed should be taken into consideration. The Commissioner of Income Tax (Appeals) dismissed the appeal filed by the assessee on this issue and held that the full value of consideration was received in the year 2017 and possession of the property was handed over by the assessee to the buyer in the year 2017.…

Legal Issues

• 1. Whether the stamp duty value on the date of the agreement for sale should be considered as the full value of consideration for computing profits and gains from transfer of the immovable property under section 43CA of the Act.

Judgment Outcome

Decided in favour of Assessee.

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