TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Court validates inclusion of sale agreement-sale deed variance in assessment, stresses accurate documentation in property deals. Discrepancies not for loan. Appeal dismissed.</h1> The court upheld the addition of the difference amount between the agreement of sale and sale deed in the assessment. It emphasized the importance of ... Difference in the amount of consideration between the agreement of sale and sale deed - agreement to sale mentions consideration of Rs 58.50 lacs whereas consideration mentioned in the sale deed is Rs. 27 lacs - consideration of Rs 58.50 lacs also supported by Valuation report - Held That:- Once there is an agreement of sale which gives the correct valuation to which the assessee is a party which is confirmed by the valuation of an approved valuer, nothing more is required to come to the conclusion that the consideration for the sale is Rs. 58,50,000. That consideration is not mentioned in the sale deed and what is mentioned is not the true consideration. addition sustained - Decided against assessee. Issues:1. Addition of the difference in amount between the agreement of sale and sale deed.2. Validity of the valuation report obtained by the purchaser.3. Discrepancy in the consideration amount mentioned in the sale deed.Analysis:1. The appellant challenged the Tribunal's order upholding the addition of the difference in amount between the agreement of sale and the sale deed. The property was initially agreed to be sold for Rs. 58,50,000 but the sale deed reflected a consideration of only Rs. 27,00,000. The appellant argued that the higher amount in the agreement was for obtaining a bank loan and not the actual transaction value. However, the court found no evidence to support this claim and emphasized that such misrepresentation for loan purposes cannot be accepted in legal proceedings.2. The appellant disputed the valuation report obtained by the purchaser, arguing that it was without her consent and did not reflect the true value of the property. The court noted that the appellant was a signatory to the agreement mentioning the higher amount, which was also confirmed by the approved valuation obtained by the purchaser's wife. The court dismissed the argument that these documents were solely for obtaining a bank loan, stating that unsubstantiated claims cannot be considered, especially when dealing with financial institutions.3. The main issue revolved around the inconsistency in the consideration amount between the agreement and the sale deed. The court observed that the consideration mentioned in the sale deed was significantly lower than the actual agreed amount. Despite the lack of evidence showing the payment of the difference amount, the court emphasized that the agreement of sale, supported by an approved valuation, established the true consideration to be Rs. 58,50,000. The court upheld the authorities' decision to add the disparity amount in the assessment, as it reflected the actual transaction value. Consequently, the court dismissed the appeal, stating that no substantial legal question arose for consideration, and no grounds for interference were found.In conclusion, the judgment upheld the addition of the difference amount in the assessment, highlighting the importance of consistent and accurate documentation in property transactions to reflect the true value of the transaction and prevent discrepancies in consideration amounts between agreements and deeds.
TaxTMI 
TaxTMI 
