SIMAL PRASAD (ALIAS BIMAL PRASAD),DARJEELING vs. I.T.O., WARD - 3(2), KOLKATA, KOLKATA

PDF · subscribers
ITA 169/KOL/2023Status: DisposedITAT Kolkata17 April 2023AY 2015-20163 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the lower sale consideration was justified because the assessee was already in possession of the property and had been running a business there for a long time. Therefore, the addition made by the lower authorities was not justified.

What were the facts?

The assessee purchased a property for Rs. 5,42,500, but the Assessing Officer believed the market value was Rs. 15,70,800. The AO invoked Section 56(2)(vii)(b) and added the difference as undisclosed sale consideration.

What were the issues?

Whether the provisions of Section 56(2)(vii)(b) are attracted when the property is purchased at a lower rate than the market value due to the assessee's prior possession and long-standing business operations.

Which sections of the Income-tax Act were involved?

Section 56(2)(vii)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH KOLKATA

Before: Shri Sanjay Garg & Shri Girish Agrawal

order : April 17, 2023 आदेश / ORDER संजय गग�, �या�यक सद�य �वारा / Per Sanjay Garg, Judicial Member: The captioned appeal has been preferred by the assessee against the order dated 03.01.2023 of the National Faceless Appeal Centre [hereinafter referred to as the ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’ 2. The sole issue involved, in this appeal, is relating to the value of the property purchased by the assessee vide registered deed dated 24.07.2014. The Assessing Officer noted that the assessee as per the said deed has paid only a sum of Rs.5,42,500/-, whereas, the market value of the property was at Rs.15,70,800/-. He, therefore, invoked the provisions of section 56(2)(vii)(b) and added the difference of the consideration mentioned in the sale deed as compared to the market value as undisclosed sale consideration of the property.

More judgments on Section 56(2)(vii)(b)

All 626 judgments and leading authorities on Section 56(2)(vii)(b) →

Recent GST High Court judgments

Search GST case law →