Tamojit Das Vs ITO (ITAT Kolkata)
ITAT Kolkata held that allotment letter given by the developer to the assessee way back in 2010 would be construed as an agreement of purchase between the developer and the assessee. Thus, addition u/s. 56(2)(vii)(b) of the Income Tax Act not survived.
Facts- The case of the assessee was selected for scrutiny assessment by issuance of a notice u/s. 143(2) dated 05.08.2016. On scrutiny of the accounts, it revealed to AO that the assessee has purchased a residential flat jointly with his wife Smt. Gargi Das through Deed of Conveyance, which was registered on 28.10.2014 before District Sub-Registrar-II, South 24-Parganas. The value of the said transaction was declared by the assessee at Rs.24,05,715/- as against stamp duty valuation of Rs.38,74,500/-. The difference of both these amounts of Rs.14,68,785/- was treated by AO as a deemed gift within the meaning of section 56(2)(vii)(b)(ii) of the Income Tax Act. AO made the addition of the difference to the total income of the assessee.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Proviso appended to this section would contemplate that when the date of agreement fixing the amount of consideration for the transfer of an immovable property and the date of registration are not be same, the stamp duty valuation on the date of agreement may be taken for the purpose of this clause. In other words, the stamp duty valuation on the date of agreement is to be considered and if there is any variation between the amount disclosed by an assessee as a purchase consideration, vis-a-vis the amount on which stamp duty was paid/ payable, then such a difference will be treated as a deemed gift in the hands of the assessee.
