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2019 (9) TMI 552 - AT - Income TaxTaxability of deemed income u/s 56(2)(vii)(b)(ii) - AO noticed that the assessee has purchased certain land parcels below stamp duty valuation rate - AO accordingly replaced the stamp duty valuation rate for the purposes of determination of purchase consideration by applying provisions of Section 56(vii)(b) - HELD THAT:- AO has applied the aforesaid provision after comparing the purchase price of the land vis-à-vis the stamp duty valuation and added the difference in the hands of the assessee in proportion to his share in land holding. CIT(A) has upheld the aforesaid action of the AO. No infirmity in the order of the CIT(A) in this regard. Section 49(4) clearly provides that the benefit of the inflated cost of acquisition in view of the deeming provisions u/s 56(2)(vii)(b)(ii) would be available at the time of sale of the asset and capital gains will be accordingly reduced to the extent of such increase in deemed consideration. CIT(A) has given appropriate relief in this regard. We thus see no wrong in action of the CIT(A). The plea of the assessee that the agricultural land is rural land was raised for the first time before us. In the absence of any findings of the lower authorities on factual aspects, we decline to entertain the aforesaid new plea. We also find no merit in the plea of the assessee for its inapplicability of Section 56(2)(vii)(b)(ii) to the FY 2013-14 concerning AY 2014-15. The aforesaid provision is applicable from AY 2014-15 and would thus apply to transactions concerning FY 2013-14 as intended by the legislature. The assessee has taken an altogether new plea that agricultural land bearing Block No. 143 was purchased in the subsequent financial year, which plea was not taken before the lower authorities. We thus see no reason to entertain such plea in the absence of any supporting material placed before the lower authorities. Otherwise also, in view of the provisions of Section 150(1) r.w.s. 153(6) of the Act, the differential income can be assessed in AY 2014-15 and therefore the whole exercise will be revenue neutral. We, however, do not seek to delineate. We thus find no merit in any of the grounds set up by the assessee.
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