2021 (9) TMI 212

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....in confirming the addition made u/s. 56(2)(vii)(b) at Rs. 35,33,499/- being the difference between actual consideration paid and value determined by stamp valuation authority in respect of a residential flat purchased under construction without properly appreciating that there was gap of more than 3 years between the date of allotment duly backed by written allotment letter and offer letter containing all vital terms & conditions agreed between appellant and developer including purchase consideration to be paid for purchase of flat No. 2401 in Orion Building and registration date of agreement of the said flat thus no such addition was warranted in view of the specific proviso to section 56(2)(vii)(b) of the I.T. Act, 1961". 3. Grounds of....

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....owed, the assessee submitted as follows:- • Property was booked on 06.08.2010. • As the construction was slow, the assessee registered it at a later date 24.03.2014. • As the time gap between allotment and registration was more than three years, the rates of the property as per the stamp valuation authorities increased. • Therefore, the difference in rate cannot be considered as income of the assessee. 6. The AO did not accept this explanation that as per Sec. 56(2)(vii)(b) if the agreement fixing the amount of consideration for the transfer of immovable property is done before registration, the stamp duty value should be taken on the date of the agreement. In the instant case the asses....

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....ce that the date of agreement is 6.8.2010. Thereafter he held that "the proviso to section 56(2)(vii)(b) is therefore not attracted. Accordingly, the order of the learned Assessing Officer is upheld and the ground of appeal is dismissed." 9. Against the above order the assessee is in appeal before us. 10. We have heard both the counsel and perused the records. Learned Counsel of the assessee contended that the assessee has duly entered into an agreement which need not be in writing. He said that in accordance with the agreement the assessee has been given allotment letter. That the assessee has already paid part of the consideration at the time of allotment hence he submitted that the same should be taken into account. In this regard ....