2024 (2) TMI 988

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....e-tax Act, 1961 (the Act) dated 26.12.2016 was partly allowed for statistical purposes. 2. The Assessee is aggrieved and has raised following two grounds of appeal 1. The Hon. CIT (A) erred in confirming addition to the extent of Rs.44, 17, 484 /- u/s 56(2)(vii)(b) of the 1. Tax Act 1961, on account of purchase of agricultural land situated at village Thanenahve, Taluka Khalapur, Dist. Raigad, not appreciating that the provisions of section 56(2)(vii)(b) of the I.T Act, 1961 are not attracted to the facts of the transaction and therefore the entire addition of Rs.44,17,484/- is unjustified and required to be deleted. 2. The Hon. CIT (A) erred in confirming addition to the extent of Rs.44,17,484/- u/s 56(2)(vii)(b) of the Income.Tax Ac....

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....stated that he has executed a release date along with others on 24.7.2015 in favour of Shri Murarilal Surajmal Mody and therefore income is not chargeable to tax in the hands of Assessee. It was further stated that purchase of land was for the purpose of charitable activity. 6. The Ld. AO noted that the land purchased by the Assessee and other parties is a non-agricultural land. The agreed value of the consideration is Rs.1.54 crores which has been paid by two other co-owners other than the Assessee whose stamp duty value is Rs.3,31,00,000/- and therefore 1/5th of the total value of the purchase of land being stamp duty value plus stamp duty registration purchase amounting to Rs.3,45,79,420/- is chargeable to tax being Rs.69,15,884/- in th....

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....y he directed the Ld. Assessing Officer to delete the addition of Rs.69,15,884/- and to restrict the addition to only 1/5th thereof. 9. Assessee is aggrieved with the above appellate order. The Ld. Authorized Representative has submitted a paper book containing 60 pages and a written submission made before the Ld. CIT (A). The Ld. Authorized Representative also submitted the assessment order in case of Shri Murarilal Surajmal Mody for assessment year 2014-15 wherein the Ld. AO has made the addition under section 56(2)(vii)(b) of the Act to the tune of Rs.62,06,494/-. Therefore, it was submitted that when complete addition of difference between stamp duty value and consideration as per sale deed has already been added in the hands of Shri M....

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....F receives from any person from 1st day of October, 2009 but before 1st day of October 2017 any immovable property for consideration which is less than the stamp duty valuation by an amount exceeding Rs.50,000/-, then the stamp duty of such property in excess of such consideration is the income chargeable under the head income from other sources. Where the value of the property is disputed, the Ld. AO may make the reference for value of such property to the district valuation officer and such valuation shall be final. In the present case, the Assessee received 1/5th share in the above property in excess of agreed consideration. Therefore, the addition in the hands of the Assessee can only be made at the rate of 1/5th of the above difference....