TaxTMI 
TaxTMI 
2025 (3) TMI 2256
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....he circumstances of the case and in law, the Hon'ble CIT(A) has: Primary Arguments 1. Erred in making an addition under Section 56(2)(vii)(b) of the Act of INR 21,91,700; 2. Erred in not appreciating the fact that the transfer was effected as on 25 March 2010 and merely registration of the aforesaid transfer was done on 25 May 2016; 3. Erred in disregarding the fact that 'Transfer of a capital asset has been defined under Section 2(47) of the Act to inter-alia include allowing of a possession of an immovable property in part performance of a contract; 4. Erred in not appreciating the fact that, assuming without admitting, even if the agreement for transfer of immovable property was entered for an inadequate consideration, the provisions of Section 56(2)(vii) were not prevailing during FY 2009-10 when the transfer was carried out; 5. Erred in holding that the date of agreement of sale of the impugned property was 25 March 2010 and the first payment for purchase of property was made by the Appellant by cheque on 29 March 2010, whereas, the Appellant had duly submitted that the cheque was given on the date of agreement itse....
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.... passbook duly reflecting the entry of FD closure proceeds; 14. Erred in levying interest under Section 234A and Section 234B of the Act; and 15. Erred in initiating penalty proceedings under Section 270A and Section 271AAC of the Act; Without prejudice arguments on merits 16. Erred in not appreciating the fact that the property was purchased in the joint name of the Appellant and her son. Thus, the complete addition in the name of the Appellant is unjust and unwarranted; The Appellant craves leave to add, alter, vary, omit, substitute or amend the above grounds of appeal, at any time before or at, the time of hearing of the appeal, so as to enable the Hon'ble Income tax Appellate Tribunal to decide this appeal according to the law. For the above and other grounds and reasons which may be submitted during the course of hearing of this appeal, the Appellant requests that the appeal be allowed as prayed." Brief facts of the case are as under: 2. The assessee is an individual and was earning salary income till the F.Y. 2010-11. In the subsequent year assessee left her job as she had to look after her son and accordingly, ....
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....immovable property was entered for an inadequate consideration, the provisions of Section 56(2)(vii) were not prevailing during FY 2009-10 when the transfer was carried out. In respect of the same, the Assessing officer clearly mentioned in assessment order and brought out all relevant facts as Second proviso to sub-clause (ii) of clause (b) of sub-section (vii) of section 56(2) of the act, is applicable in this case first payment by cheque has been made on 29/03/2010, i.e. after the date of agreement of sale dtd.25/03/2010. Though, provisions of section 56(2)(vii)(b) says that payment or part payment has to be paid in any mode other than cash on or before the date of agreement for sale. Being violated the provisions of section 56(2)(vii)(b)(ii) by the appellant in, the difference of Rs. 21,91,700/- was added by Assessing officer to total income under the head income from other source. In view of the above circumstances, it is pertinent to note that the appellant failed to submit any documentary evidence to prove that possession of property was taken in 2010 itself. It is also noted that the appellant is a non-filer and source of income amounting to Rs. 13,00,000/- in A.Y.....
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....he appellant failed to explain the source of such expenses amounting to Rs. 2,05,000/- was made addition by the AO. The contention of the appellant is not found tenable. Hence, the ground is disallowed." Aggrieved by the order of the Ld. CIT(A) the assessee is in appeal before this Tribunal. 4. The Ld.AR submitted that Ground No. 1-11 are in respect of the addition made, based on the difference between the Agreement value and on the stamp duty value as on the date of registration. He submitted that, the assessee purchased immovable property in the year 2010 through banking channels. It was submitted that, the Rs. 2,00,000/- each was given on 25/03/2010 by way of two cheques to the vendor as part payment and thereafter another 3,00,000/- was paid on 03/04/2010 and 06/04/2010 by way of cheque. He submitted that sum of Rs. 4,00,000/- was paid on 22/03/2010 and 25/03/2010 by way of cash withdrawn from bank and remaining 4,00,000/- was paid after 06/04/2010 from her own savings. The Ld.AR submitted that the assessee paid entire sale consideration during financial year 2009-10 and 2010-11 amounting to Rs. 13,00,000/-. He placed reliance on the following table showing the breakup of....
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.... No. 218 for a value of Rs. 13,00,000/-. There is no dispute between the authorities that the consideration has been paid by the assessee way back in 2010-11. The assessee has placed before us, the bank passbook showing the entry of monies having withdrawn by cheque from the bank or in cash. It is noted that, the vendor also executed an affidavit as on 25/03/2010 stating that the said property has been transferred to the assessee and that all the necessary title in respect of the property is being transferred in her name. It is further noted that, there is nothing on record brought by the revenue to establish anything contrary to the above and it is not a case of inadequate consideration as alleged by the revenue. In our view the amended provisions of section 56(2)(vii)(b) introduced subsequently by the Finance Act 2013 and that assessee's case would fall within the pre amended provision. In view of the fact that the agreement for purchase of the property was entered into during financial year 2009-10. The Ld.AO is thus directed to delete the addition made u/s. 56(2)(vii)(b) of the Act. Accordingly Ground no. 1-11 raised by the assessee stands allowed. 6. In respect of Ground....