TaxTMI 
TaxTMI 
2025 (12) TMI 1828
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....Act, 1961 ("the Act") 2. On the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in directing the Assessing Officer to re-compute the income chargeable to tax under section 56(2)(x) of the Act without appreciating that the said provisions do not apply in the present case. 3. On the facts and circumstances of the case and in law, the Ld. CIT (A) failed to provide an opportunity of personal hearing which had been specifically sought. 4. On the facts and circumstances of the case and in law, the Ld. CIT (A) failed to appreciate that the Appellant is not chargeable to income-tax either under capital gains or under income from other sources. 5. On the facts and circumstances of the case and in law, the Ld. CIT (A) failed to appreciate that even if provisions of section 56(2)(x) of the Act, no income can be charged to tax. 6. On the facts and circumstances of the case and in law, the Appellant submits that the order passed by the Assessing Officer is invalid and non-est." 2. The assessee is an individual and filed the return of income for AY 2018-19 on 24.07.2018 declaring a total income of Rs. 9,30,570/-. The ....
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....lat was at Rs. 84,55,500/-. 3. The Assessing Officer (AO) after perusing the above facts and the purchase document submitted by the assessee issued a show-cause notice to the assessee as to why the difference between the stamp duty value of Rs. 84,55,500/- and the agreement value of Rs. 34,71,750/- should not be added as per section 56(2) of the Act. The AO did not accept the submission that the stamp duty value of the old space surrendered should be considered and the stamp duty value as mentioned in the purchase deed is for the entire flat which cannot be compared with the agreed purchase value of 159 sq. ft. The AO also did not accept the submission that the value on the date of original agreement i.e. 23.10.2010 should be considered for the purpose of additions, if any u/s. 56(2). The AO proceeded to treat the entire amount of Rs. 89,08,300/- (which includes the stamp duty paid) as amount received without any consideration to make an addition u/s. 56(2)(x)(b) of the Act. Aggrieved the assessee filed further appeal before the CIT(A). Before the CIT (A) the assessee also raised the legal contention that the provisions of section 56(2)(vii)/(x) which existed....
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....ll compute the consideration paid by the appellant to the Developer by way of handing over the old flat to the Developer. The consideration has to be computed by indexing the cost of purchase and cost of any improvements. Indexation has to be provided for the period from the date of purchase of the old flat till the registration of the new flat. The AO has also to consider all other expenditure incurred wholly and exclusively in connection with such transfer. ii. In case stamp duty value of the new flat (to the extent of 961 sq ft) exceeds the above consideration, the AO is directed to add the difference amount in terms of section 56(2)(x)(b). iii. The Appellant is directed to furnish all relevant details before the AO for the purpose of computing the 'consideration' as per 'i' above." 4. The ld. AR submitted that the lower authorities have not understood the facts in assessee's case properly before making any addition u/s. 56(2)(vii)/56(2)(x). The ld. AR further submitted that the stamp duty value as mentioned in the agreement dated 31.03.2017 (page 291 to 371 of PB) pertain to the entire flat whereas the consideration as mentioned in the a....
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....operty as exceeds such consideration: Provided that where the date of the agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement may be taken for the purposes of this sub-clause: Provided further that the said proviso shall apply only in a case where the amount of consideration referred to therein, or a part thereof has been paid by any mode other than cash on or before the date of the agreement for the transfer of such immovable property." 7.2 From the above, we note that section 56(2)(vii) was originally introduced in ted statute book w.e.f. 1-10-2009 which was not in existence when the impugned agreement 56(2) (vi) came into existence after the execution of agreement to purchase of property. The purchase consideration of Rs. 31,24,430/- was fixed by this agreement for purchase and part payment had already been made on the dates stated above. Accordingly, at the relevant point in time, when the agreement for purchase was executed, there was no such law which necessitated the market value of the property be deemed as consider....
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....dicial to the interest of the revenue. Therefore, considering the totality of facts and circumstances of the case, the impugned order passed u/s 263 of the Act by the Ld. Pr. CIT, is quashed. Grounds taken by the assessee are allowed." 5. The ld. AR also drew our attention to the ready recknor value of the 159 sq. ft. area purchased by the assessee as on 23.10.2010 (page no. 219 of PB) and the computation submitted before the AO to contend that the stamp duty value is much lower than the value for the assessee acquired the said area. Particulars Value as per CTS No. G-452 Share of Laxman K. Dharmani (70.21 %) Share of Mamta L. Dharmani (29.79 %) Carpet Area 159.00 Sq. Feet Add :- 20 % for Built up 31.80 Sq. Feet Total Built-up 190.80 Sq. Feet 1 Sq. Meter = 10.764 Sq. Feet Square Meter 17.73 Sq. Meter Reckoner Rate 1,82,200/- per Sq. Meter Add :- 5 % for Floor rise 9,110/- Total Applicable Rate 1,91,310 Reckoner Value....