2025 (2) TMI 1945

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....1(1)(c) of the Income-tax Act (hereinafter referred to as the "Act"), dated 25.03.2019 for Assessment Year 2015-16. 2. Ground taken by the assessee is reproduced as under: 1. "On the facts and circumstances of the case, the Id. CIT(A) of National Faceless Appeal Centre erred in confirming the penalty of Rs. 2,59,383 levied u/s.271(1)(c) of the Act on the addition made under deemed provisions of section 56(2)(vii) (b) of the Act. 2. "On the facts and circumstances of the case, the Id. CIT(A) of National Faceless Appeal Centre has erred in law and on facts in upholding the levy of penalty u/s 271(1)(c) of the Act ignoring the fact that the penalty is initiated on the deemed income computed by adopting the stamp value of t....

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....mbernath, Thane, for a total consideration of Rs. 1,50,00,000/- against stamp duty valuation of Rs. 2,88,38,000/-. Ld. Assessing Officer noted that agreement for sale was entered on 30.07.2012 and conveyance deed was entered on 05.12.2014. On these facts, after considering the submissions made by assessee, ld. Assessing Officer held that property was transferred in the year 2014 for which provisions of section 56(2)(vii)(b) are applicable. Accordingly, the difference of Rs. 1,38,38,000/- between the stamp duty value and the actual purchase value was added as income from other sources u/s. 56(2)(vii)(b) while completing the assessment. 4.1. In the penalty proceedings, ld. Assessing Officer noted that valuation report from Valuation Office....

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....movable property which is less than the stamp duty value of the property by an amount exceeding Rs. 50,000/-, the stamp duty value of such property as exceeds such consideration shall be chargeable to income tax under the head 'income from other sources'. Third proviso to section 56(2)(vii)(b) provides that where the stamp duty of immovable property is disputed by the assessee, the Assessing Officer may refer the valuation of such property to a Valuation Officer and provisions of section 50C and section 155(15) shall apply in relation to the stamp duty value of such property for the purpose of sub-clause (b) of clause (vii) of sub-section 2 of section 56, as they apply for valuation of capital asset under those sections. 5.2. Income from....