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2021 (12) TMI 308 - ITAT MUMBAIAddition u/s 56(2)(vii)(b)(ii) - FMV of property - Mandation of reference to the valuation officer as was required per the mandate of Sec. 50C(2) - adoption by the A.O of the value that was taken by the Stamp Valuation Authority for valuing the property in question - Assessee submitted that amount for which the property in question had been transacted as per the ‘agreement’ be accepted without any reference to its market value as was adopted by the Stamp Valuation Authority - HELD THAT:- We are unable to persuade ourselves to substantiate to the claim of the assessee that as the property under construction was an under construction flat which pursuant to the fraud played by the builder had not been received by him till date; and the matter is sub-judice before the courts, therefore, the provisions of Sec. 56(2)(vii)(b) would not be applicable qua the transaction in question. Considering the definition of “transfer” as contemplated in Sec. 2(47) of the Act, we are of the considered view that pursuant to the execution of the registered “agreement to sell” dated 11/15.10.2013 between the assessee and the seller i.e the builder, viz. M/s Lok Housing and Construction Ltd., the transfer of the property under consideration for the purpose of triggering the provisions of Sec.56(2)(vii)(b) stood completed. The events subsequent to the transaction of “transfer” of the immovable property under consideration will have no bearing on the applicability of the provisions of Sec.56(2)(vii)(b) - Accordingly, we reject the aforesaid claim of the assessee that the provisions of Sec.56(2)(vii) would not be applicable in its case - we are not inclined to accept the manner in which the A.O had made an addition in the hands of the assessee u/s 56(2)(vii)(b)(ii) of the Act i.e without making a reference to the valuation officer as was required per the mandate of Sec. 50C(2) of the Act, therefore, we herein set-aside the matter to the file of the A.O for fresh adjudication - Appeal filed by the assessee is allowed for statistical purposes.
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