TaxTMI 
TaxTMI 
2019 (7) TMI 286
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....he facts and in the circumstances of the case the learned lower authorities grossly erred in making an addition of Rs. 34,23,542/- under section 56(2)(vii)(b)(ii) of the I.T. Act on account of suppression of purchase price of land in the hands of the assessee appellant. 1.1 That on the law and in the facts and in the circumstances of the case the learned lower authorities grossly erred in not considering the submissions made by the assessee appellant that the said purchase is stock-in-trade and is not a capital asset and hence provisions of section 56(2)(vii)(b)(ii) are not attracted, has dismissed the appeal of the assessee without even bothering to look at the statutory provision. 1.2 That the learned lower authorities g....
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..... 12 lakhs in the liability side of balance sheet. The AO invoked the provision of sec. 56(2)(vii)(b)(ii) of the Act adopting the full value of sale consideration as adopted by the stamp authority and added the difference amount Rs. 34,23,542/- in the hand of assessee appellant as deemed income of the assessee u/s. 56(2)(vii)(b)(ii) of the Act 5. By the impugned order of the ld.CIT(A), the ld. CIT(A) confirmed the action of the AO by observing that the property is defined in very specific way in the definition by mentioning " property ", which means both agricultural land and non-agricultural land. Accordingly, the order passed by the AO was confirmed by the ld. CIT(A). 6. The ld. AR vehemently argued that the appellant assessee is....
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....r a part thereof, has been paid by any mode other than cash on or before the date of the agreement for the transfer of such immovable property;] (c ).......................................................... (i).......................................................... (ii)........................................................... Provided that where the stamp duty value of immovable property as referred to in sub-clause (b) is disputed by the assessee on grounds mentioned in sub-sectio (2) of section 50C, the Assessing Officer may refer the valuation of such property to a Valuation Officer, and the provisions of section 50C and sub-section (15) of section 155 shall, as far as may be, apply in relation t....
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....of business or trade, the profits of which are taxable under specific head of income. Our attention was invited to the definition of property, which has been amended to provide that section 56(2)(vii) will have application to the ' property' which is in the nature of a capital asset of the recipient and therefore would not apply to stock-intrade, raw material and consumable stores of any business of such recipient. 8. The ld.AR also contended that there is no such allegation of laundering of unaccounted income by the AO, hence invocation of provision of sec. 56(2)(vii) is bad in law. He contended that the AO has not bothered to refer the matter to the DVO, before invoking the provision. 9. On the other hand, the ld. DR relied on the o....