03 January 2020
The assessee is a real estate developer. He sold plots not below the guideline rates. As per sale deeds the assessee borne the expenses on stamp duty and registration fee. The assessing officer is of the view that in the form of free registration facility the assessee has offered a discount whereby the consideration received is not equal to the guideline value and therefore the expenses borne by assessee on registration fee and stamp duty is the difference between actual consideration and guideline value and he proposes to add such difference u/s 43CA. Please guide. Thanks
12 January 2020
In my view it can be argued that the consideration received from the buyer is not less than the guidelines value as he received the full value. The Act does not talk about the "net consideration". Further it can be argued in appeal by taking a plea on the line that the stamp duty paid is a revenue expenditure for the developer as he is engaged as a dealer in the property.
CAclubindia
