Bhavesh Suresh Sejpal Vs ITO (ITAT Nagpur)
ITAT Nagpur held that the provisions of section 56(2)(vii) (b)(ii) of the Income Tax Act came into statute by Finance Act 2013 w.e.f. 01.04.2014 i.e., A.Y.2014-15. Accordingly, provisions cannot be made applicable to date of agreement before 01.04.2014.
Facts- The assessee purchased an immovable property as a co–owner from M/s. Sri Balaji Betala INfracon, Nagpur, for a consideration of Rs. 25,92,000. However, AO found that the market value of the said immovable property was Rs. 42,84,000, vide sale deed registration executed on 15/03/2014. AO was of the view that according to the provisions of section 56(2)(vii)(b) of the Act, if any immovable property for a consideration which is less than the stamp duty value of the property by an amount exceeding Rs. 50,000, the stamp duty of such property, as exceeds such consideration, shall be chargeable to income tax under the head “Income from other sources”. AO was further of the view that the amount of Rs. 8,46,000, is required to be taxed u/s. 56(2)(vii)(b) of the Act and hence the case was re–opened u/s. 147 of the Act.
Consequent upon the issuance of the assessment order passed under section 56(2)(vii)(b) of the Act, the assessee filed appeal before the first appellate authority. However, the same was dismissed. Accordingly, being aggrieved, the present appeal is filed.
