Dimple Rajesh Oswal Vs ITO (ITAT Pune)
ITAT Pune Deletes 56(2)(vii)(b) Addition: Flat Booked & Paid for in 2012, Registration in 2016 Irrelevant – Pre-Amendment Law Applies
In this case, Assessee , an individual, had booked a flat in February 2012 & made substantial payments (₹34.56 lakh out of ₹46.55 lakh) before 31.03.2013 based on an allotment letter. However, the sale deed was registered only in January 2016, & therefore the stamp duty authority adopted the 2016 ready reckoner value of ₹57.31 lakh, which was higher than the agreed consideration.
AO reopened the assessment & completed it u/s 143(3) r.w.s. 147, making an addition of ₹10,76,291 u/s 56(2)(vii)(b) being the difference between stamp duty value & actual purchase price. Assessee did not object during assessment but later explained before CIT(A) that the property was effectively acquired in 2012 & stamp duty rate of 2016 was wrongly applied. Assessee relied on ITAT Kolkata (Asha Vijay) & ITAT Ranchi (Bajrang Lal Naredi) rulings to argue that section 56(2)(vii)(b), which covers purchases below stamp duty value, applies only from FY 2014-15 onwards, & if the agreement/possession/payment occurred before that period, then the provision cannot be invoked merely because registration happened later.
CIT(A) rejected the explanation & sustained the addition, holding that section 56(2)(vii)(b) was applicable since registration took place in 2016. Assessee appealed before the Tribunal.
