Feb
The Delhi bench of ITAT in the case having appeal no. ITA No. 1673/Del/2023 has decided that stamp value as on the date of agreement of sale of the property has to be considered for the applicability of Section 56(2)(vii)(b) of the Act. By doing the same, the ITAT has deleted the addition made under Section 56(2)(vii)(b). Further, the bench noted that the appellant had entered into an agreement fixing the amount of consideration in the year 2010, but the actual registration took place in 2013, and, further, the assessee paid a part of the consideration before the date of the agreement.
Brief facts herein as the appellant assessee is an NRI didn’t file an ITR on the premise that the total income had not exceeded the exemption limit. Further based upon the information received by the AO that the assessee has purchased an immovable property thereafter reassessment proceedings were initiated under Section 147, and notice was served on the appellant then in response to the notice the appellant filed his ITR and contented that the appellant purchased residential flat against the consideration.
Tribunal decision: The tribunal decided that the first proviso to Section 56(2)(vii)(b) categorically provides 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 same, the stamp duty value on the date of the agreement be taken for this provision and decided that the tribunal allowed the appeal and held that the stamp value on the date of agreement in the year 2010 has to be considered.