The Tax Publishers2020 TaxPub(DT) 4964 (Mum-Trib)

INCOME TAX ACT, 1961

Section 56(2)(vii)(b)

Where provision of section 56(2)(vii)(b) does not envisage transfer of ownership for determination of stamp duty value and determination of stamp duty value hinges on the date of agreement fixing the amount of consideration for transfer of immovable property and at the time of booking flat the total amount of consideration was fixed between the parties, therefore, provision of section 56(2)(vii) was not attracted in this case.

Income from other sources - Addition made under section 56(2)(vii)(b) - Difference between the market value and purchase consideration on date of registration of sale -

Assessee had booked a residential flat and paid a sum on the date of booking by way of cheque. A perusal of allotment letter would show that developer had acknowledged receipt paid by assessee in 2012 and had reiterated total consideration of the flat at Rs. 1,05,60,000. Developer had again acknowledged that two cheques were received from the assessee. Assessee submitted that proviso to sub-clause (b) to section 56(2)(vii) provides that where date of agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on date of the agreement may be taken for the purpose of sub-clause (b). Consideration for purchase of flat was mutually agreed when assessee had booked the flat. Thus, case of assessee was squarely covered by proviso to section 56(2)(vii)(b). Held: Proviso to sub-clause (b) of section 56(2)(vii) gets attracted and the Stamp Duty value as on the date of booking the flat wherein the consideration was mutually agreed between the parties was fixed shall be taken for the purpose of sub-clause (b). There was merit in the contentions raised by assessee. Provision of Section 56(2)(vii)(b) does not envisage transfer of ownership for determination of stamp duty value. The determination of stamp duty value hinges on the date of agreement fixing the amount of consideration for transfer of immovable property. At the time of booking flat the total amount of consideration was fixed between the parties. Therefore, provision of section 56(2)(vii) was not attracted in this case.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15



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