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From the above chart, it is seen the provisions of section 43CA can apply to substitute the actual sale consideration with the stamp value. In view of section 43CA, the sale value has to be replacing against agreement value disclosed in the P & L account of the Assessee. Accordingly difference of Rs.2,05,29,102/- is added u/s. 43CA of the I.T. Act,1961 under tine head Business income. Penalty proceedings under section 271 r.w.s. 271(1)( c ) are separately initiated for concealing particulars of income and filing inaccurate particulars of income."

3. The Assessee being aggrieved, challenged the said addition before the Ld. Commissioner mainly on the ground that provisions of ITA 2026/Mum/2023 Monarch & Qureshi Builders section 43CA of the Act which came into effect from 01/04/2014 are not applicable to the case of the Assessee, as the Assessee has made the booking and the sale of the flats prior to previous year i.e. before 1st April, 2013 and, therefore, provisions of section 43CA of the Act are not applicable. The Ld. Commissioner though considered the claim of the Assessee; however, not being influenced, came to the conclusion that provisions of section 43CA of the Act are applicable to the case of the Assessee and ultimately, affirmed the addition of Rs.2,05,29,102/- by holding as under:-

7.3 Further, the assessee had failed to establish the entire sale consideration were received through payee's account cheque prior to ITA 2026/Mum/2023 Monarch & Qureshi Builders 01/04/2013 and also that the sale deeds were registered by the assessee during the relevant previous year only, therefore, since the appellant has disputed the applicability of provisions of Section 43CA of the Act on the ground that booking for sale of flats in question were made prior to the previous year which is prior to the date on which provisions of Section 43CA of the Act are applicable i.e. on 01/04/2013.

7.6 Thus, once the provisions itself has taken care of such a situation or difference in date of prior agreement, then the applicability of provisions cannot be questioned based on mere existence of prior agreement. The transfer under the provisions of section 43CA is recognized only when a registered document is executed and therefore, in view of the facts and circumstances of the case, since the transfer through sale deed is made during, the previous year relevant to the assessment year under consideration for which the provisions of Section 43CA are applicable. In such a situation, merely because an agreement has taken placed prior to 01/4/2013 would not take- away the transaction from the ambit of the provisions of Section 43CA of the Act. More particularly when the entire sale consideration was not made through account payee cheque at the time of entering into an agreement to sell.