INCOME TAX : Where assessee, engaged in construction of a commercial project, entered into agreement to sell flats/offices (which were under construction)

Provision of sec. 43CA not applicable if builder entered into agreement to sell under-construction flats – Shree Laxmi Estate (P.) Ltd. [2019] 108 taxmann.com 195 (Mumbai – Trib.)

What the assessee had transferred pursuant to registration of the agreement was only the rights in the flat/office (which is under construction) and not the property per se. Hence it could be safely concluded that there was no transfer of any land or building or both by the assessee in favour of the flat buyers pursuant to registration of the agreement in the year under appeal. Hence the provisions of section 43CA cannot be made applicable to the same.