Case Law Details
Case Name : ITO Vs Shri Trilok Chand Sain (ITAT Jaipur)
Related Assessment Year : 2014-2015
Courts :
All ITAT ITAT Jaipur
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ITO Vs Shri Trilok Chand Sain (ITAT Jaipur)
In the instant case, the assessee has purchased three plots of land during the year under consideration. The sale consideration as per the respective sale deeds amounts to Rs 23,00,000 and the stamp duty value of such properties as determined by the Stamp duty authority amounts to Rs 1,74,06,224/- and therefore, there is difference to the tune of Rs 1,51,06,224/- between the sale consideration as per the sale deeds and the stamp valuation determined by the Stamp Valuation Authority
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Section 56(2)(vii)(b) speaks of any immovable property and explanation (d) defined property which says that “property means the following capital asset of the assessee namely ….”
Capital Asset has been defined u/s 2(14) and its clause (iii) excludes rural agricultural land.
Therefore, in my opinion Rural Agricultural Land is not considered as Capital Asset, and therefore it is not a property for the purpose of s. 56(2)(vii). Thus, the difference in value as adopted for the purpose of Stamp Duty and the actual consideration paid shall not become income of the assessee who purchased rural agricultural land.
In the new section 56(2)(x) also there is reference to the definition of property as contained in subsection (vii)
It appears that the attention of the Honourable ITAT was not drawn to the above provisions.
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