TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 764
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.... statutory notices assessee file requisite details as called for. 2.1 The Ld.AR observed that assessee during the year under consideration had purchased the property having a transaction value of Rs. 1,33,64,550/-. To verify the purchase, requisite documentary evidences were called for wide notice dated 23/08/2016. The assessee in response submitted the registered agreement towards purchase of the flat dated 31/12/2013, that was registered on 05/03/2014. The Ld.AO observed that, sale consideration recorded in the agreement was Rs. 1,16,59,950/- but the stamp duty was paid at the value of Rs. 1,33,64,550/-. 2.2 The Ld.AO thus made addition of the differential amount in the stamp duty value by invoking provisions of section 56(2)(vii)(b) of the act. 2.3 Aggrieved by the order of the Ld.AO, simplified appeal before the Ld.CIT(A). 2.4 The Ld.CIT(A) after considering the submissions of the assessee observed and held as under: "6.1.1 The appellant raised a ground that the Ld. AO erred in making an addition of Rs 17,04,600/- for the stated difference between the stamp duty value and the value of consideration as per the registered deed paid towards acquisition of an i....
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....he first payment for booking was made in the year, 2010, the ready reckoner rate of the year 2010 should be applicable to the said flat and the stamp duty value for the 2010 should be considered. 6.1.2.1 During scrutiny proceedings, AO recorded statement u/s 131 of the Act from the assessee. During his statement, the assessee furnished copy of letter dated 26.12. 2016 issued by the builder acknowledging the receipt of booking amount from the assessee towards the flat on 18.10.2010 and it is also mentioned in the letter that the cost of the flat is Rs. 1,16,59,950/-. However, when the assessee was asked that whether any agreement was entered into with the builder at the time of payment of booking amount or after, the assessee replied that no such agreement was made. The only agreement which was made was that entered on 31.12.2013 and the same had been registered on 05.03.2014. 6.1.2.2 As per the provisions of sec. 56(2) (vii) (b) of the Act, in a case where an assessee, being an individual, purchases any immovable property for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value o....
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....determine the value of the flat at Rs. 1,33,64,550/-, cannot be the reason to invoke provisions of section 56 (2)(vii) (b) of the act. He submitted that the 1st payment made by the assessee's on 18/10/2010 towards the purchase of the flat as earnest money has to be treated as the date on which the assessee agreed to purchase the flat from the builder. He submitted that subsequently assessee had made various payments in instalments on 20/03/2010 to 11/01/2011, 20/01/2011, 21/01/2012. 6. The Ld.AR submitted that admittedly there is no allotment letter that was issued by the builder however the receipts against which the payments were made categorically shows that they were the part payment towards the consideration agreed between the assessee in the builder. Thus, the Ld.AR submitted that once the assessee brought on record documentary evidence for the part payment of the purchase consideration during 2010 through cheques and the builder having accepted the booking of the flat in the name of the assessee on 19/10/2010 then the booking of purchase of flat coupled with the payment made by the assessee in pursuant to the booking of the flat constitute an agreement as provided U/s 56(....
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....established that at the time of booking, there was an agreement between the parties regarding the purchase and sale of the flat in question and payment of the purchase consideration as per the agreed schedule between the parties. Thus, even if there is no separate agreement between the parties in writing but the agreement which is registered itself shows that the terms and conditions as contained in the said agreement were agreed between the parties at the time of booking of the flat. Hence, in our considered opinion that there was an agreement between the parties regarding purchase and sale of flat in question at the time of booking of the said flat and part payment made by the assessee on 18/10/2010 through cheque and there is subsequent payment on 23/10/2010 through cheque. Thus, the booking of the flat and part payment by the assessee constitute agreement between the parties as the terms and conditions which are reduced in writing in the agreement registered on 31/12/2014 relates to the performance of both the parties right from the beginning i.e. date of booking of the flat. The provisions of section 56(2)(vii) of the Act reads as under: "Section 56 (1)..........