SAURABH ASHOK AGRAWAL,NAGPUR vs. DCIT/ACIT CIRCLE-2, NAGPUR

In the instant case, during the course of assessment proceedings, it was noticed by the Assessing Officer (AO) that the Assessee had purchased a piece of land valued at Rs. 21,61,500/- vide registered sale deed dated 03/03/2015 as against the stamp duty valuation to the tune of Rs. 24,36,000/- and, therefore, added the difference amount of Rs. 2,74,500/-, between the stamp duty valuation and consideration shown by the Assessee u/sec. 56(2)(vii) of the Act, to the total income of the Assessee. The Assessee has claimed that as per oral agreement and mutual understand that the property was purchased in 2014 itself by making the following payments:- Date of payment Mode of payment Amount 04/08/2014 Cheque No.091482 1,63,850 02/09/2014 Cheque No.091483 1,11,000 01/10/2014 Cheque No.091484 1,11,000 05/11/2014 Cheque No.091485 1,11,000 03/12/2014 Cheque No.091486 1,11,000 Total 6,70,850

The Assessee drew the attention of this Court to the sale deed dated 03/03/2015 wherein at para 1, the aforesaid payments have (Saurabh Ashok Agrawal) duly been reflected and rest of the amount has been paid in subsequent installments and, therefore, according to proviso to section 56(2)(vii) of the Act which prescribed that where the date of agreement fixing the amount of consideration for transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of agreement may be taken for the purpose of this sub-clause.

Thus, considering the peculiar facts and circumstances in totality, this Court is inclined to delete the addition made by the Ld.AO u/sec. 56(2)(vii)(b) which is otherwise not applicable to the Assessee’s case. Thus, the addition is deleted by allowing the appeal of the Assessee.

In the result, Assessee’s appeal is allowed.