2024 (10) TMI 364

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....essee has taken seven grounds of appeal, but in brief, his grievance is whether any addition could be made in his hand under section 56(2)(vii)(b)(ii) of the Income Tax Act on the ground that cost of a property purchased by him along with his mother would be deemed equivalent to the amount on which stamp duty was paid by the assessee. 3. Brief facts of the case are that the assessee has filed his return of income on 31.08.2015 declaring total income of Rs. 7,27,020/-. The case of the assessee was selected for scrutiny assessment by issuance of a notice under section 143(2) dated 05.08.2016. On scrutiny of the accounts, it revealed to the ld. Assessing Officer that the assessee has purchased a residential flat jointly with his wife Smt. G....

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.... rejected this application of the assessee. Dissatisfied with the rejection order passed under section 154, the assessee has filed an appeal before the ld. CIT(Appeals), which has been dismissed by the impugned order. 5. With the assistance of ld. Representatives, we have gone through the record carefully. Section 56(2)(vii)(b) has a direct bearing on the controversy. Therefore, we deem it appropriate to take note of this section, which reads as under:- "56(1) Income of every kind which is not to be excluded from the total income under this Act shall be chargeable to income tax under the head "Income from Other Sources". If it is not chargeable to income tax under any of the heads specified in section 14, items A to E. ....

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....te of the agreement for the transfer of such immovable property; 6. A perusal of the proviso appended to this section would contemplate that when the date of agreement fixing the amount of consideration for the transfer of an immovable property and the date of registration are not be same, the stamp duty valuation on the date of agreement may be taken for the purpose of this clause. In other words, the stamp duty valuation on the date of agreement is to be considered and if there is any variation between the amount disclosed by an assessee as a purchase consideration, visa- vis the amount on which stamp duty was paid/ payable, then such a difference will be treated as a deemed gift in the hands of the assessee. 7. The dispute in the p....

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....ate for the purpose of any deemed gift is the date when first payment was made, in this case it happened around June, 2010. The ld. Assessing Officer has erred in taking the valuation of the property as on 28th October, 2014. 8. At this stage, we would like to draw attention to the CBDT Circular No. 872 dated 16.12.1993. The issue under this Circular was whether allotment of flats/houses by Cooperative Societies and other Institutions whose scheme of allotment and construction are similar to this of DDA should be treated as the cases of construction for the purpose of section 54 and 54F. Earlier there was a Circular bearing No. 471 dated 15.10.1986, wherein it was provided that cases of allotment of flats under the self-financial scheme ....