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Facts
The assessee purchased a property for Rs. 5,24,39,000 with an agreement date of 31.03.2017, and paid Rs. 5,00,000 through banking channels on the same date. The stamp duty valuation on that date was Rs. 4,90,43,950. The Assessing Officer treated the difference as income under Section 56(2)(x) of the Income Tax Act.
Held
The Tribunal held that the proviso to Section 56(2)(x) allowing adoption of stamp duty value as on the agreement date is applicable from Assessment Year 2017-18 onwards. Since the conditions of prior payment through banking modes and the agreement date's stamp duty value being less than the consideration were met, the addition was not sustainable.
Key Issues
Whether the benefit of adopting stamp duty value as on the agreement date under the proviso to Section 56(2)(x) was available for Assessment Year 2018-19.
Sections Cited
56(2)(vii)(b)(ii), 56(2)(x), 234A, 234B, 234C, 270A, 50C, 43CA
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Income Tax Appellate Tribunal, SURAT BENCH “SMC” SURAT
Before: SHRI SANDEEP GOSAIN & SHRI OM PRAKASH KANT
ORDER PER OM PRAKASH KANT, AM
This appeal by the assessee is directed against order dated 18.06.2025 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2018-19, raising following grounds:
Ground 1. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming addition of Rs.1410000 under section 56(2)(vii)(b)(ii) on Income Tax Act, 1961
Ground 2. On the facts and circumstances of the case and law, Ground 2. On the facts and circumstances of the case and law, Ground 2. On the facts and circumstances of the case and law, the Ld. CIT(A) failed to consider that there is time gap between the Ld. CIT(A) failed to consider that there is time gap between the Ld. CIT(A) failed to consider that there is time gap between considering fixing date and registration date, then stamp value considering fixing date and registration date, then stamp value considering fixing date and registration date, then stamp value as on agreement fixing date will be considered for the purpose of as on agreement fixing date will be considered for the purpose of as on agreement fixing date will be considered for the purpose of section 56(2)(vii)(b)(ii) which is below the purchase consideration. section 56(2)(vii)(b)(ii) which is below the purchase consideration. section 56(2)(vii)(b)(ii) which is below the purchase consideration. Further the provision is applicable in AY 2018 Further the provision is applicable in AY 2018-19 also Ground 3. Without Prejudice to Ground No. 2, On the facts and Ground 3. Without Prejudice to Ground No. 2, On the facts and Ground 3. Without Prejudice to Ground No. 2, On the facts and circumstances of the case and law, the Ld. CIT(A) failed to cumstances of the case and law, the Ld. CIT(A) failed to cumstances of the case and law, the Ld. CIT(A) failed to consider that the difference between the purchase consideration consider that the difference between the purchase consideration consider that the difference between the purchase consideration and stamp duty value is within tolerance limit. Hence, no and stamp duty value is within tolerance limit. Hence, no and stamp duty value is within tolerance limit. Hence, no addition under section 56(2)(vii)(b)(ii) will apply addition under section 56(2)(vii)(b)(ii) will apply Ground 4. On the facts Ground 4. On the facts and circumstances of the case and law and circumstances of the case and law the Ld. CIT(A) erred in confirming interest u/s 234A, 234B and the Ld. CIT(A) erred in confirming interest u/s 234A, 234B and the Ld. CIT(A) erred in confirming interest u/s 234A, 234B and 234C of income tax act, 1961. 234C of income tax act, 1961. Ground 5. On the facts and circumstances of the case and law, Ground 5. On the facts and circumstances of the case and law, Ground 5. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming invocation of penalty provis the Ld. CIT(A) erred in confirming invocation of penalty provis the Ld. CIT(A) erred in confirming invocation of penalty provision u/s 270A on addition made under deeming provisions of income u/s 270A on addition made under deeming provisions of income u/s 270A on addition made under deeming provisions of income tax. Ground 6. Appellant craves leave to add further grounds OR to Ground 6. Appellant craves leave to add further grounds OR to Ground 6. Appellant craves leave to add further grounds OR to amend OR alter the existing grounds of appeal on OR before amend OR alter the existing grounds of appeal on OR before amend OR alter the existing grounds of appeal on OR before the date of hearing hearing
2. Briefly stated, facts of the case are that Briefly stated, facts of the case are that the assessee is an the assessee is an individual who filed her return of income electronically on individual who filed her return of income electronically on individual who filed her return of income electronically on 30.08.2018 declaring a total income of 30.08.2018 declaring a total income of ₹4,10,400/- -. The return so filed was selected for scrutiny under the prescribed parameters, and filed was selected for scrutiny under the prescribed parameters, and filed was selected for scrutiny under the prescribed parameters, and statutory notices under the Act were duly statutory notices under the Act were duly issued and complied with. issued and complied with.
2.1 During the course of the assessment proceedings, the During the course of the assessment proceedings, the During the course of the assessment proceedings, the Assessing Officer observed that the assessee had purchased a Assessing Officer observed that the assessee had purchased a Assessing Officer observed that the assessee had purchased a property situated at Khar Road, Mumbai, jointly with her husband, property situated at Khar Road, Mumbai, jointly with her husband, property situated at Khar Road, Mumbai, jointly with her husband, vide a registered sale agreement dated 10.11. vide a registered sale agreement dated 10.11.2017 for a sale 2017 for a sale consideration of ₹5,24,39,000/ 5,24,39,000/-. The corresponding stamp duty . The corresponding stamp duty valuation of the said property was determined at ₹5,52,59,000/-, valuation of the said property was determined at valuation of the said property was determined at thus revealing a differential of thus revealing a differential of ₹28,20,000/–. The Assessing Officer, . The Assessing Officer, being being being of of of the the the view view view that that that such such such difference difference difference represented repr repr an undervaluation attracting the provisions of section 56(2)(vii)(b) [now undervaluation attracting the provisions of section 56(2)(vii)(b) [now undervaluation attracting the provisions of section 56(2)(vii)(b) [now section 56(2)(x)] of the Act, proposed to treat the same as income section 56(2)(x)] of the Act, proposed to treat the same as income section 56(2)(x)] of the Act, proposed to treat the same as income from other sources in the hands of the assessee. from other sources in the hands of the assessee.
2.2 In response, the assessee explained that the property in In response, the assessee explained that the property in In response, the assessee explained that the property in question had been allotted to her on 31.03.2017, upon payment of question had been allotted to her on 31.03.2017, upon payment of question had been allotted to her on 31.03.2017, upon payment of ₹5,00,000/- by way of cheque, and that the agreed consideration by way of cheque, and that the agreed consideration by way of cheque, and that the agreed consideration fixed at that date was in excess of the prevailing stamp duty fixed at that date was in excess of the prevailing stamp duty fixed at that date was in excess of the prevailing stamp duty valuation as on 31.03.2017. The assessee thus contended that by n as on 31.03.2017. The assessee thus contended that by n as on 31.03.2017. The assessee thus contended that by virtue of the proviso to section 56(2)(vii)(b) [or its successor section virtue of the proviso to section 56(2)(vii)(b) [or its successor section virtue of the proviso to section 56(2)(vii)(b) [or its successor section 56(2)(x)], the transaction was immune from addition. However, the 56(2)(x)], the transaction was immune from addition. However, the 56(2)(x)], the transaction was immune from addition. However, the Assessing Assessing Assessing Officer, Officer, Officer, finding finding finding the the the evidentiary evidentiary evidentiary support support support to to to be be be incomplete—particularly noting that only a partial bank statement particularly noting that only a partial bank statement particularly noting that only a partial bank statement had been furnished without the cover page of the passbook— had been furnished without the cover page of the passbook had been furnished without the cover page of the passbook proceeded to make an addition of ₹28,20,000/- as income from proceeded to make an addition of as income from other sources.
2.3 In appeal, the Ld. CIT(A) accepted the factual position In appeal, the Ld. CIT(A) accepted the factual position In appeal, the Ld. CIT(A) accepted the factual position that the stamp duty valuation as on the date of the initial allotment stamp duty valuation as on the date of the initial allotment stamp duty valuation as on the date of the initial allotment (31.03.2017) was indeed lower than the agreed sale consideration (31.03.2017) was indeed lower than the agreed sale consideration (31.03.2017) was indeed lower than the agreed sale consideration recorded in the registered agreement. Nevertheless, the Ld. CIT(A) recorded in the registered agreement. Nevertheless, the Ld. CIT(A) recorded in the registered agreement. Nevertheless, the Ld. CIT(A) opined that the benefit of the said proviso could be availed only opined that the benefit of the said proviso could be a opined that the benefit of the said proviso could be a from 01.04.2019 onwards, treating it as prospective in operation. from 01.04.2019 onwards, treating it as prospective in operation. from 01.04.2019 onwards, treating it as prospective in operation. He therefore sustained the addition, albeit restricting it to 50% of He therefore sustained the addition, albeit restricting it to 50% of He therefore sustained the addition, albeit restricting it to 50% of the total differential amount, corresponding to the assessee’s one- the total differential amount, corresponding to the assessee’s one the total differential amount, corresponding to the assessee’s one half share in the property, thus confirmin half share in the property, thus confirming an addition of g an addition of ₹14,10,000/-.
2.4 Being aggrieved, Being aggrieved, the assessee is in appeal before the Tribunal the assessee is in appeal before the Tribunal by way of raising the grounds reproduced above. by way of raising the grounds reproduced above.
We have heard the rival submissions We have heard the rival submissions made by the Ld. made by the Ld. Authorised Authorised Authorised Representative Representative Representative for for for the the the assessee assessee assessee and and and the the the Ld. Ld. Ld. Departmental Representative for the Revenue, and have carefully Departmental Representative for the Revenue, and have carefully Departmental Representative for the Revenue, and have carefully perused the relevant material on record as well as the statutory perused the relevant material on record as well as the statutory perused the relevant material on record as well as the statutory provisions. The limited controversy before us is whether the benefit provisions. The limited controversy before us is whether the benefit provisions. The limited controversy before us is whether the benefit of the first and second provisos to section 56(2)(x)(b) of the Act— of the first and second provisos to section 56(2)(x)(b) o of the first and second provisos to section 56(2)(x)(b) o permitting adoption of the stamp duty value as on the date of the permitting adoption of the stamp duty value as on the date of the permitting adoption of the stamp duty value as on the date of the agreement where consideration has been paid by specified banking agreement where consideration has been paid by specified banking agreement where consideration has been paid by specified banking modes—was available during the year under consideration or came was available during the year under consideration or came was available during the year under consideration or came into effect only from assessment year 2019 into effect only from assessment year 2019–20, as h 20, as held by the Ld. CIT(A). For clarity, it may be observed that up to assessment year For clarity, it may be observed that up to assessment year For clarity, it may be observed that up to assessment year 2016–17, the provision governing taxation of immovable property 17, the provision governing taxation of immovable property 17, the provision governing taxation of immovable property received for inadequate consideration was contained in section received for inadequate consideration was contained in section received for inadequate consideration was contained in section 56(2)(vii)(b) of the Act, applicable to individ 56(2)(vii)(b) of the Act, applicable to individuals and Hindu uals and Hindu Undivided Families (HUFs). From assessment year 2017–18 Undivided Families (HUFs). From assessment year 2017 Undivided Families (HUFs). From assessment year 2017 onwards, the said clause stood superseded by section 56(2)(x), onwards, the said clause stood superseded by section 56(2)(x), onwards, the said clause stood superseded by section 56(2)(x), which extended similar provisions to all persons, including firms which extended similar provisions to all persons, including firms which extended similar provisions to all persons, including firms and companies. Since in this case dispute Since in this case dispute is falling dur is falling during the period when section 56(2)(x) came into operation, the relevant period when section 56(2)(x) came into operation period when section 56(2)(x) came into operation proviso to section 56(2)(x) of the Act is reproduced proviso to section 56(2)(x) of the Act is reproduced as under as under:
48[(x) where any person receives, in any previous year, from any person or persons on where any person receives, in any previous year, from any person or persons on or after where any person receives, in any previous year, from any person or persons on the 1st day of April, 2017,- the 1st day of April, 2017, (a) any sum of money, without consideration, the aggregate value of which exceeds any sum of money, without consideration, the aggregate value of which exceeds any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum; fifty thousand rupees, the whole of the aggregate value of such sum; fifty thousand rupees, the whole of the aggregate value of such sum; (b) any immovable property, any immovable property,- (A) without without consideration, the stamp duty value of which exceeds fifty consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property; thousand rupees, the stamp duty value of such property; thousand rupees, the stamp duty value of such property; 49[(B) for a consideration, the stamp duty value of such property as exceeds for a consideration, the stamp duty value of such property as exceeds for a consideration, the stamp duty value of such property as exceeds such consideration, if such consideration, if the amount of such excess is more than the the amount of such excess is more than the higher of the following amounts, namely: higher of the following amounts, namely:- (i) the amount of fifty thousand rupees; and the amount of fifty thousand rupees; and (ii) the amount equal to 50[ten] per cent of the conside [ten] per cent of the conside-ration:] Provided that where the date of agreement fixing the amount of consideration that where the date of agreement fixing the amount of consideration that where the date of agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the for the transfer of immovable property and the date of registration are not the for the 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 same, the stamp duty value on the date of agreement may be taken for the same, the stamp duty value on the date of agreement may be taken for the purposes of this sub-clause : purposes of this sub Provided further Provided further that the provisions of the first proviso shall apply only in a that the provisions of the first proviso shall apply only in a case where the amount of consideration referred to therein, or a part thereof, case where the amount of consideration referred to therein, or a part thereof, case where the amount of consideration referred to therein, or a part thereof, has been paid by way of an account payee cheque or an account payee bank has been paid by way of an account payee cheque or an account payee bank has been paid by way of an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account draft or by use of elec tronic clearing system through a bank account 51[or through such other electronic mode as may be prescribed 52], on or before the through such other electronic mode as may be prescribed through such other electronic mode as may be prescribed date of agreement for transfer of such immovable property: date of agreement for transfer of such immovable property: date of agreement for transfer of such immovable property: Provided also Provided also that where the stamp duty value of immovable property is that where the stamp duty value of immovable property is disputed by the assessee on grounds mentioned in sub-section (2) of section disputed by the assessee on grounds mentioned in sub disputed by the assessee on grounds mentioned in sub 50C, the Assessing Officer may refer the valuation of such property to a , the Assessing Officer may refer the valuation of such property to a , the Assessing Officer may refer the valuation of such property to a Valuation Officer, and the provisions of section 50C and sub Valuation Officer, and the provisions of and sub-section (15) of section 155 shall, as far as may be, appl shall, as far as may be, apply in relation to the stamp duty value of y in relation to the stamp duty value of such property for the purpose of this sub-clause as they apply for valuation of such property for the purpose of this sub clause as they apply for valuation of capital asset under those sections: capital asset under those sections: 53[Provided also Provided also that in case of property being referred to in the second proviso that in case of property being referred to in the second proviso to sub-section (1) of section (1) of section 43CA, the provisions of sub-item (ii) of item (B) shall item (ii) of item (B) shall have effect as if for the words “ten per cent”, the words “twenty per cent” had have effect as if for the words “ten per cent”, the words “twenty per have effect as if for the words “ten per cent”, the words “twenty per been substituted;] been substituted;] (c) any property, other than immovable property, any property, other than immovable property,- (A) without consideration, the aggregate fair market value of which without consideration, the aggregate fair market value of which without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market exceeds fifty thousand rupees, the whole of the aggregate fair market exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property; value of such property;
(B) for a consideration which is less than the aggregate fair market value for a consideration which is less than the aggregate fair market value for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the of the property by an amount exceeding fifty thousand rupees, the of the property by an amount exceeding fifty thousand rupees, the aggregate fair market value of such property as exceeds such aggregate fair market value of such property as exceeds such aggregate fair market value of such property as exceeds such consideration : consideration : Provided that this clause shal that this clause shall not apply to any sum of money or any property received l not apply to any sum of money or any property received- (I) from any relative; or from any relative; or (II) on the occasion of the marriage of the individual; or on the occasion of the marriage of the individual; or (III) under a will or by way of inheritance; or under a will or by way of inheritance; or (IV) in contemplation of death of the payer in contemplation of death of the payer or donor, as the case may be; or or donor, as the case may be; or (V) from any local authority as defined in the Explanation to clause (20) of from any local authority as defined in the Explanation to clause (20) of section from any local authority as defined in the Explanation to clause (20) of 10; or (VI) from any fund or foundation or university or other educational institution or from any fund or foundation or university or other educational institution or from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in hospital or other medical institution or any trust or institution referred to in hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or clause (23C) of (VII) from or by any trust from or by any trust or institution registered under 54[section 12A [section 12A or section 12AA or section 12AB section 12AB]; or (VIII) by any fund or trust or institution or any university or other educational by any fund or trust or institution or any university or other educational by any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause institution or any hospital or other medical institution referred to in sub institution or any hospital or other medical institution referred to in sub (iv) or sub-clause (v) or sub clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of clause (via) of clause (23C) of section 10; or ; or (IX) by way of transaction not regarded as transfer under clause (i) or by way of transaction not regarded as transfer under clause (i) or 55[clause (iv) by way of transaction not regarded as transfer under clause (i) or or clause (v) or] clause (vi) or clause (via) or clause (viaa) or clause (vib) or clause or clause (v) or] clause (vi) or clause (via) or clause (viaa) or clause (vib) or clause or clause (v) or] clause (vi) or clause (via) or clause (viaa) or clause (vib) or clause (vic) or clause (vica) or clause (vicb) or clause (vid) or clause (vii) clause (vica) or clause (vicb) or clause (vid) or clause (vii) clause (vica) or clause (vicb) or clause (vid) or clause (vii) 56[or clause (viiac) or clause (viiad) or clause (viiae) or clause (viiaf)] of section 47; or (viiac) or clause (viiad) or clause (viiae) or clause (viiaf)] of (viiac) or clause (viiad) or clause (viiae) or clause (viiaf)] of (X) from an individual by from an individual by a trust created or established solely for the benefit of a trust created or established solely for the benefit of relative of the individual;* relative of the individual; 57[(XI) from such class of persons and subject to such conditions, as may be prescribed from such class of persons and subject to such conditions, as may be prescribed from such class of persons and subject to such conditions, as may be prescribed 58;]* 59[(XII) by an individual, from any person, in respect of any expenditure actually by an individual, from any person, in respect of any expenditure actually by an individual, from any person, in respect of any expenditure actually incurred by him on his medical treatment or treatment of any incurred by him on his medical treatment or treatment of any incurred by him on his medical treatment or treatment of any member of his family, for any illness related to COVID family, for any illness related to COVID-19 subject to such conditions 19 subject to such conditions 60, as the Central Government may, by notification in the Official Gazette, specify in this Central Government may, by notification in the Official Gazette, specify in this Central Government may, by notification in the Official Gazette, specify in this behalf;* (XIII) by a member of the family of a deceased person, by a member of the family of a deceased person,- (A) from the employer of the deceased person; or from the employer of the deceased person; or (B) from any other person or persons to the extent that such sum or from any other person or persons to the extent that such sum or from any other person or persons to the extent that such sum or aggregate of such sums does not exceed ten lakh rupees, aggregate of such sums does not exceed ten lakh rupees, aggregate of such sums does not exceed ten lakh rupees, where the cause of death of such person is illness related to COVID the cause of death of such person is illness related to COVID-19 and the the cause of death of such person is illness related to COVID payment is- (i) received within twelve months from the date of death of such person; received within twelve months from the date of death of such person; received within twelve months from the date of death of such person; and and (ii) subject to such other conditions subject to such other conditions 60, as the Central Government may, by Central Government may, by notification in the Official Gazette, specify in this behalf. notification in the Official Gazette, specify in this behalf. notification in the Official Gazette, specify in this behalf.
Explanation. Explanation.-For the purposes of clauses (XII) and (XIII) of this proviso, “family”, For the purposes of clauses (XII) and (XIII) of this proviso, “family”, in relation to an individual, shall have the same meaning as assigned to it in in relation to an individual, shall have the same meaning as assigned to it i in relation to an individual, shall have the same meaning as assigned to it i Explanation 1 to clause (5) of section 10:] Explanation 1 to clause (5) of 61[Provided further that clauses (VI) and (VII) of the first proviso shall not apply where that clauses (VI) and (VII) of the first proviso shall not apply where any sum of money or any property has been received by any person referred to in sub- any sum of money or any property has been received by any person referred to in sub any sum of money or any property has been received by any person referred to in sub section (3) of section 13 section 13.] 62[Explanation.-For the purposes of this clause, For the purposes of this clause,- (a) the expressions “assessable”, “fair market value”, “jewellery”, “relative” and the expressions “assessable”, “fair market value”, “jewellery”, “relative” and the expressions “assessable”, “fair market value”, “jewellery”, “relative” and “stamp duty value” shall have the same meanings as respectively assigned to “stamp duty value” shall have the same meanings as respectively assigned to “stamp duty value” shall have the same meanings as respectively assigned to them in the Explanation to clause (vii); and them in the Explanation to clause (vii); (b) the expression “property” shall have the same meaning as assigned to it in the expression “property” shall have the same meaning as assigned to it in the expression “property” shall have the same meaning as assigned to it in clause (d) of the Explanation to clause (vii) and shall include virtual digital clause (d) of the Explanation to clause (vii) and shall include virtual digital clause (d) of the Explanation to clause (vii) and shall include virtual digital asset;]] 3.1 The relevant portion of section 56(2)(x), as inserted by the The relevant portion of section 56(2)(x), as inserted by the The relevant portion of section 56(2)(x), as inserted by the Finance Act, 2017 with effect from 1st April, 2017, and applicable 2017 with effect from 1st April, 2017, and applicable 2017 with effect from 1st April, 2017, and applicable for assessment year 2017 for assessment year 2017–18 onwards, expressly provides that 18 onwards, expressly provides that where the date of agreement fixing the amount of consideration for where the date of agreement fixing the amount of consideration for where the date of agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are the transfer of immovable property and the date of registration are the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement e same, the stamp duty value on the date of the agreement e same, the stamp duty value on the date of the agreement may be adopted for the purposes of computing the deemed income. may be adopted for the purposes of computing the deemed income. may be adopted for the purposes of computing the deemed income. This benefit, however, is subject to the further condition—contained This benefit, however, is subject to the further condition This benefit, however, is subject to the further condition in the second proviso in the second proviso—that the consideration, or a part thereof, that the consideration, or a part thereof, must have been paid by account payee cheque, bank draft, or must have been paid by account payee cheque, bank draft, or must have been paid by account payee cheque, bank draft, or electronic transfer on or before the date of such agreement. electronic transfer on or before the date of such agreement. electronic transfer on or before the date of such agreement.
3.2 Upon a careful reading of the statutory text and legislative Upon a careful reading of the statutory text and legislative Upon a careful reading of the statutory text and legislative chronology, it is manifest that both the aforesaid provisos were chronology, it is manifest that both the aforesaid provisos were chronology, it is manifest that both the aforesaid provisos were introduced by the Finance Act, 2017 with effect from 1st April, 2017 duced by the Finance Act, 2017 with effect from 1st April, 2017 duced by the Finance Act, 2017 with effect from 1st April, 2017 and are therefore applicable to all assessment years commencing and are therefore applicable to all assessment years commencing and are therefore applicable to all assessment years commencing thereafter, including the assessment year under consideration. The thereafter, including the assessment year under consideration. The thereafter, including the assessment year under consideration. The reasoning adopted by the Ld. CIT(A), to the effect that the proviso is reasoning adopted by the Ld. CIT(A), to the effect that the p reasoning adopted by the Ld. CIT(A), to the effect that the p operative only from assessment year 2019 operative only from assessment year 2019–20, is therefore contrary 20, is therefore contrary to the plain language of the enactment. to the plain language of the enactment.
3.3 In the instant case, it stands admitted that the agreement for In the instant case, it stands admitted that the agreement for In the instant case, it stands admitted that the agreement for allotment of the property was entered into on 31.03.2017, allotment of the property was entered into on 31.03.2017, allotment of the property was entered into on 31.03.2017, accompanied by payment of payment of ₹5,00,000/- through banking channels through banking channels on that very date. The assessee also placed before the lower on that very date. The assessee also placed before the lower on that very date. The assessee also placed before the lower authorities the contemporaneous stamp duty valuation as on authorities the contemporaneous stamp duty valuation as on authorities the contemporaneous stamp duty valuation as on 31.03.2017 amounting to 31.03.2017 amounting to ₹4,90,43,950/-, which was admittedly , which was admittedly less than the agreed consi less than the agreed consideration of ₹5,24,39,000/ 5,24,39,000/-. Hence, when tested against the proviso, the transaction falls entirely outside the tested against the proviso, the transaction falls entirely outside the tested against the proviso, the transaction falls entirely outside the mischief of section 56(2)(x). mischief of section 56(2)(x).
3.4 Once the statutory condition of prior payment through Once the statutory condition of prior payment through Once the statutory condition of prior payment through banking modes and a higher sale consideration as on the agreement banking modes and a higher sale consideration as on the a banking modes and a higher sale consideration as on the a date stands fulfilled, there remains no occasion to invoke any date stands fulfilled, there remains no occasion to invoke any date stands fulfilled, there remains no occasion to invoke any addition based upon the subsequently enhanced stamp duty addition based upon the subsequently enhanced stamp duty addition based upon the subsequently enhanced stamp duty valuation at the time of registration. valuation at the time of registration.
3.5In light of the foregoing discussion, and considering the manifest 3.5In light of the foregoing discussion, and considering the manifest 3.5In light of the foregoing discussion, and considering the manifest intent of the legislature in aligning section 56(2)(x) with section 50C legislature in aligning section 56(2)(x) with section 50C legislature in aligning section 56(2)(x) with section 50C and section 43CA for uniformity of treatment, we hold that the and section 43CA for uniformity of treatment, we hold that the and section 43CA for uniformity of treatment, we hold that the assessee was fully entitled to adopt the stamp duty valuation as on assessee was fully entitled to adopt the stamp duty valuation as on assessee was fully entitled to adopt the stamp duty valuation as on the date of the agreement for sale. Accordingly, the addition the date of the agreement for sale. Accordingly, the addition the date of the agreement for sale. Accordingly, the addition sustained by the Ld. CIT(A) cannot be upheld. ined by the Ld. CIT(A) cannot be upheld.
3.6 We therefore set aside the order of the Ld. CIT(A) on this issue We therefore set aside the order of the Ld. CIT(A) on this issue We therefore set aside the order of the Ld. CIT(A) on this issue and direct deletion of the addition made by the Assessing Officer. and direct deletion of the addition made by the Assessing Officer. and direct deletion of the addition made by the Assessing Officer.
3.7 The grounds of appeal of the assessee are accordingly allowed. The grounds of appeal of the assessee are accordingly allowed. The grounds of appeal of the assessee are accordingly allowed.
In the result, the appeal of the assessee is allowed. esult, the appeal of the assessee is allowed. esult, the appeal of the assessee is allowed.