2019 (4) TMI 1877

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ances of the case and in law the Ld. CIT(A) erred in upholding the addition made by the AO u/s 56(2)(vii)(b) representing the difference between the stamp duty value and the actual purchase consideration of Rs. 27,58,000/- in spite of the fact the provisions of the said section are not applicable to the facts of the case inasmuch as the agricultural land purchased by the appellant not being a 'property' as per the definition provided in the said section, it being an agricultural land not falling in the definition of capital asset. 3. The issue raised in the present appeal is against addition made under section 56(2)(vii)(b) of the Act i.e. difference between stamp duty value and the actual purchase consideration. 4. Briefly, i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r section 2(14) of the Act, which exempted agricultural land. The assessee explained that he had purchased agricultural land which was specifically mentioned in the purchase deed and hence, provisions of section 56(2) of the Act were not applicable. He also placed reliance on CBDT circular in this regard. The Assessing Officer rejected the plea of assessee on the ground that the aforesaid section states any immovable property and did not make any distinction between agricultural or non-agricultural property. Thus, the difference between stamp duty value and actual consideration, amounting to Rs. 27,58,000/- was treated as income under section 56(2)(vii)(b)(ii) of the Act and added under the head 'Income from other sources'. 5. Th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....) any sum of money without consideration exceeding Rs. 50,000/-, then the whole of such sum is chargeable to tax under 'Income from other sources'. Under clause (b), any immovable property i.e. (i) without consideration, the stamp duty value of which exceeds Rs. 50,000/-, then stamp duty value of such property is to be added; and (ii) for consideration which is less than stamp duty value of the property by an amount exceeding Rs. 50,000/-, then stamp duty value of such property as exceeds such consideration is to be added in the hands of person as 'Income from other sources'. Clause (c) talks of any property other than immovable property and sub-clause (i) talks of without consideration the aggregate fair market value which ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n the first instance, where the assessee had purchased agricultural land which was its stock in trade and on its sale the receipts were recognized and accepted as business income, then there is no question of attracting the provisions of section 56(2)(vii)(b) of the Act against assessee. Even otherwise, the land held by assessee was agricultural land which is not capital asset as clearly defined under section 2(14) of the Act, which excludes agricultural land out of definition of 'capital asset'. The asset owned by assessee is not capital asset, hence clause (b) is not attracted and provisions of clause (c) i.e. property other than immovable property is also not attracted, in view of definition of property as per clause (d) under Ex....