TaxTMI 
TaxTMI 
2026 (1) TMI 225
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....t') for the A.Y. 2018-19. 2. In this case, as per agreement for sale, the Assessee had purchased the property involved on a consideration of Rs. 91,00,000/- as against the stamp duty valuation to the tune of Rs. 96,53,000/- and therefore the Assessing Officer (AO) vide assessment order dated 06.08.2021 u/s 143(3) r.w.s 144B of the Act has made the addition of Rs. 2,76,500/- being 50% share of the Assessee u/s 56(2)(x) of the Act on account of variation between the purchase value declared by the Assessee and stamp duty valuation as prevalent at that particular time. The AO in the assessment order itself has also mentioned that addition would be subjected to rectification u/s 154 of the Act on receipt of valuation report from the DVO, whic....
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....Co-ordinate Bench of the Tribunal in the case of ITA No.6912/M/2019 decided on 14.09.2021 titled as Joseph Mudaliar Vs. Dy. Commissioner of Income Tax wherein the Hon'ble Co-ordinate Bench of the Tribunal analyzed the relevant provisions of the law such as section 43CA, 50C & 56(2)(x) of the Act and ultimately allowed the leverage granted by the statue, even by considering 10% as subsequently increased by the Statute, by observing and holding as under: "9. Before dealing with the substantive issue, it is necessary to look into the relevant statutory provisions. By the Finance (No.2) Act, 2009 section 50C was introduced in the statute with effect from 01-04-2010. As per the provision of section 50C(1) of the Act, where the considera....
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....the Act vesting the assessing authority with power to adopt the stamp duty value as deemed sale consideration in respect of the buyer of the immovable property. However, by Finance Act, 2013, a new sub clause (b) was introduced to section 56(2)(vii) with effect from 01-04-2014, which reads as under:- "(b) any immovable property,- (i) Without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property; (ii) 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 of such property as exceeds such consideration: ................" 11. As could be seen from sectio....
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....with the aforesaid amendment made to section 56(2)(vii), the Finance Act, 2017 also introduced clause (x) to section 56(2) to bring within its ambit the transactions referred to in section 56(2)(vii) undertaken after 1st day of April, 2017. Clause (x) of section 56(2) was subsequently amended by Finance Act, 2018 with effect from 01-04-2019 and again by Finance Act, 2020 with effect from 01-04-2021. The relevant part of section 56(2) which is required for our purpose is extracted hereunder:- "(x) where any person receives, in any previous year, from any person or persons on or after the 1st day of April, 2017,- (a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whol....
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....e, by the Finance Act 2020, the permissible limit of variation in the value has been enhanced to ten per cent from five per cent. Of course, in case of section 43CA further benefit has been granted to the assessee by enhancing the limit of variation to 20%. 14. On a conjoint reading of sections 50C, 43CA and 56(2)(x) of the Act, the legislative intention becomes absolutely clear that wherever the statute provides for adoption of the value determined by the stamp valuation authority as the deemed sale consideration, in case, it exceeds declared sale consideration, exceptions have also been provided not to adopt the market value if the difference between the value declared by the assessee and determined by the stamp duty authority is....
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....ation. Thus, if the variation between the aforesaid two values falls within the range of ten per cent, no addition can be made. 17. It is further relevant to observe, section 50C or for that matter section 56(2)(vii)(b)(ii) are identical provisions. Only difference being, 50C is applicable to the seller of an immovable property, whereas, the later provision is applicable to the buyer of the property. Therefore, a benefit given to a seller of the property in respect of marginal variation cannot be denied to the buyer of the property, since, they stand on the same footing. This aspect of the issue has also been considered by the co-ordinate bench in case of Shri Sandip Patil vs ITO (supra), wherein, the co-ordinate bench has held tha....