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Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI
Before: S/SHRI CHANDRA MOHAN GARG & LAXMI PRASAD SAHU
IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI
BEFORE S/SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER
ITA No.46/Ran/2018 Assessment Year: 2014-15
Rajiv Kumar Sinha, Sector-1/C, Vs. ITO, Ward 3(2), Bokaro Qr. No.1206, Bokaro Steel City,- 827001 PAN/GIR No.BIKPS 8203 A (Appellant) .. ( Respondent)
Assessee by : Shri Rakesh Kumar Sinha, Adv Revenue by : Shri P.K.Mondal, Addl. CIT(DR) Date of Hearing : 27/08/2019 Date of Pronouncement : 27/08/2019
O R D E R Per Bench This is an appeal filed by the assessee against the order of the
Commissioner of Income Tax(Appeals)- Hazaribag dated 27.6.2017 for the
assessment year 2014-15.
The sole issue involved in this appeal is that the Commissioner of
Income Tax(Appeals) was not justified in confirming the difference amount
of Rs.2,40,000/- being the amount paid to the builder and also stamp duty
paid to the State Government.
The relevant material facts are like this. During the course of
assessment proceedings, the Assessing Officer noticed that the assessee
had purchased a flat in Ranchi for a consideration of Rs.26,70,000/-,
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ITA No.46/R an/2018 Ass essment Year : 2014 -15
whereas stamp duty has been paid as per Government rate i.e.
Rs.29,10,000/-. Therefore, the Assessing officer treated the difference
amount of Rs.2,40,000/- (Rs.29,10,000 – Rs.26,70,000) and added the
same to the income of the assessee as income from other sources.
On appeal, the CIT(A) held that as per section 56(2)(vii)(b)(ii) of the
Act, the differential amount would be taxed as deemed income of the
taxpayer and hence upheld the action of the Assessing Officer.
Before us, ld A.R. submitted that the assessee had purchased a flat in 5th November, 2013 for a consideration of Rs.26,70,000/-. He submitted
that as per section 56(2)(vii)(b), as substituted by the Finance Act, 2013
w.e.f. 1.4.2014, if immovable property is transferred for a consideration
which is less than the stamp duty value, the difference is assessable as
income in the transferee’s hands as income from other sources. He
submitted that the provisions of section 56(2)(vii)(b)(ii) was not effective
during the financial year 2013-14 relevant to assessment year 2014-15,
therefore, the differential amount of Rs.2,40,000/- will not be taxed in the
hands of the assessee.
Replying to above, ld D.R. submitted that the assessment year
involved in this case is 2014-15 He submitted that Section
56(2)(viii)(b)(ii) clearly stipulates that where any immoveable property is
received for a consideration which is less than the stamp duty value of the
property by an amount exceeding Rs.50000/-, the stamp duty value of such
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ITA No.46/R an/2018 Ass essment Year : 2014 -15
property as exceeds such consideration, shall be chargeable to tax in the
hands of the individual or HUF as income from other sources and it is
applicable from A.Y. 2014-15.
We have heard the rival submissions and perused the record of the
case. It is an admitted fact that section 56(2)(vii)(b)(ii) of the Act is
applicable from the assessment year 2014-15 and, therefore, the differential
amount towards purchase of flat is taxable in the hands of the assessee.
Since the assessment year involved in this appeal is 2014-15, we find no
error in the order of the CIT(A) in view of the mandatory provisions of the
Act and, accordingly, uphold the same.
In the result, appeal filed by the assessee is dismissed.
Order pronounced on 27/08/2019. Sd/- sd/- (Laxmi Prasad Sahu) (Chandra Mohan Garg) ACCOUNTANT MEMBER JUDICIALMEMBER Ranchi; Dated 27 /08/209 B.K.Parida, SPS
Copy of the Order forwarded to : 1. The Appellant : Rajiv Kumar Sinha, Sector-1/C, Qr. No.1206, Bokaro Steel City,-827001
The Respondent. ITO, Ward 3(2), Bokaro 3. The CIT(A)- Hazaribag 4. Pr.CIT-Hazaribag 5. DR, ITAT, Ranchi 6. Guard file. By order //True Copy//
Sr. Pvt. Secretary, ITAT, Cuttack camp at Ranchi
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