Case Law Details
Ashutosh Jha (HUF) Vs ITO (ITAT Ranchi)
Where assessee purchased a property and made part payment of sale consideration by cheque on very next day of execution of purchase agreement and registry was done after a year, since such part payment made by cheque on very next day of execution of agreement was towards fulfilment of terms of purchase contract itself and there was no mala fide or false claim on part of assessee, no addition could be made on account of difference between amount of sale consideration for property shown in purchase agreement and stamp duty value of said property on date of registry by invoking section 56(2)(vii)(b).
At the time of execution of agreement to purchase, there was no provision in the Act for taking stamp duty as the value of the property for determination of capital gains, in case the consideration is paid less than the stamp duty value, therefore, the assessee did not apprehend any such action by the assessing officer. The assessee made part payment through cheque as per the terms of the agreement. In my view, mere mentioning of the date of the very next day on the cheque did not make any difference. Further, the provisions were amended in section 56(vii)(2)(b) of the Act by the Finance Act, 2013 w.e.f 01.04.2014 and after this amendment the said sub-section reads as follows:-
(b) any immovable property,-
(i) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;
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