Indian Kanoon - Search engine for Indian Law

50. Thus, Ground No. 5 of the assessee's appeal for Assessment Year 2023-24 is partly allowed in the aforesaid terms. Ground No. 6, being general and argumentative in nature, stands disposed of accordingly.

Horizon Projects Pvt. Ltd.

51. In the result, the assessee's appeal for Assessment Year 2023-24 is partly allowed.

52. We now take up the Revenue's cross appeal in ITA No. 7787/Mum/2025 for Assessment Year 2023-24. The Revenue has challenged the relief granted by the learned CIT(A) on multiple counts, namely restriction of on-money addition to 15%, restriction of disallowance in respect of subcontracting expenditure, deletion of separate addition under section 69C, deletion of addition under section 43CA, restriction of addition relating to unaccounted scrap sale receipts, and the telescoping / allowance of notional expenditure out of on- money receipts.

55. We now come to Ground No. 4 of the Revenue's appeal for A.Y. 2023-24, whereby the Revenue has challenged the deletion by the learned CIT(A) of the addition made by the Assessing Officer under section 43CA of the Act. The grievance of the Revenue is that the learned CIT(A) erred in holding that section 43CA was not attracted merely because the project was under construction and no registered sale deed or possession had been completed during the year, despite the fact that agreements to sell had been executed and consideration had been received.

59. Before us, the learned counsel for the assessee reiterated that there was no infirmity in the appellate order and that both on legal principle and on factual computation the addition under section 43CA had rightly been deleted. The learned Departmental Representative, on the other hand, submitted that once rights in property were created through agreements to sell and consideration was received or accrued, section 43CA was attracted and registration or handing over of possession was not decisive.

79. On the issue of addition under section 43CA, we have upheld the findings of the learned CIT(A) on both factual and legal grounds, noting that the Assessing Officer proceeded on an incorrect stamp duty valuation and that in the facts of the case, no taxable event warranting invocation of section 43CA had arisen during the year.

Horizon Projects Pvt. Ltd.