TaxTMI 
TaxTMI 
2026 (6) TMI 1187
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....order of the Assessment Unit Income Tax Department (for brevity the 'Ld. AO') order passed under section 147 r.w.s. 144B of the Act date of order 28.02.2024. 2. The brief facts of the case are that the assessee filed the return declaring total income Rs. 2,80,800/-. The information was received that the assessee had purchased an immovable property amount to Rs. 99,00,536/- on 23.10.2017 however, the stamp duty valuation of the said property was determined by the stamp duty authority amount of Rs. 1,11,41,000/-. Considering this, the Ld. AO added back the difference of the stamp duty value and the set forth value amount to Rs. 12,40,464 u/sec. 56(2)(x)(b)(B) of the Act. Being aggrieved assessee filed the appeal before the Ld. CIT(A). The ....
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..... AR further submitted that all relevant facts and supporting documents had been duly placed before both the Ld. AO and the Ld. CIT(A). In this regard, he invited our attention to the observations recorded by the Ld. AO at pages 7 and 8 of the impugned assessment order, the relevant extract of which is reproduced below: "During the proceedings the assessee had submitted Receipt cum Allotment Letter issued by Mishal Construction Pvt Ltd dated 08/03/2011 against payment of Rs. 7,00,000/-, Receipt voucher of Rs. 22,00,000/- issued by Mishal Construction Pvt Ltd dated 28/02/2018 and a Copy of Sale Agreement dated 23/10/2017 executed between Mrs. PurviNihal Shah & Mr. NihalMaikant Shah and Mishal Construction Pvt Ltd. From the ....
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....per agreement is Rs. 99,00,536/- only. As per the section 50C of IT act if stamp valuation of the property is more that 110% of sale consideration than the stamp value of the property is taken a value of the property. In the instant case 110% of Rs. 99,00,536/-comes to Rs. 1,08,90,589/-. In such case the stamp value of the property is more that 110% of the sale consideration as per agreement. Hence, Stamp Valuation of the property of Rs. 1,11,41,000/- is taken as sale consideration. In view of the above, as the assessee had purchased immovable property below the stamp duty value, the provision of section 56(2)(x)(b)(B) of the Income Tax Act, 1961 is attracted and the difference of stamp duty value and agreement value of the propert....
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....ed financial year. The Ld. DR stands in favor of the order of revenue authorities. 7. We have heard the rival submissions and examined the documents available on record. A plain reading of the provisio to Section 56(2)(x)(b)(B) of the Act reveals that:- "56(2)(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 whole of the aggregate value of such sum; (b) any immovable property,- (A) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property; ^59[(B) for a ....
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....sset under those sections:" [Emphasis Supplied] 8. We have carefully considered the rival submissions and perused the material available on record. In the present case, the assessee entered into an agreement for purchase of the property, pursuant to which an allotment letter was duly issued by the promoter. The consideration was paid through proper banking channels. Therefore, for the purpose of section 56(2)(x)(b)(B) of the Act, the stamp-duty valuation prevailing on the date of allotment, i.e., during F.Y. 2010-11, is required to be considered. On examination of the Ready Reckoner value and the valuation report applicable to F.Y. 2010-11, it is observed that the stamp-duty valuation of the property was Rs.52,99,247/-, whereas ....