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2021 (2) TMI 219 - AT - Income TaxRevision u/s 263 - purchase of two industrial plots of land - addition as Income from other sources u/s 56(2)(vii)(b)(ii) - Order passed u/s 143(3) has been rightly set aside by CIT with directions to properly examine the issue relating to applicability of provisions of section 56(2)(vii)(b)(ii)HELD THAT:- We find that the subject matter of examination by the Assessing Officer was limited to the expenses which have been incurred in relation to these industrial plots however as far as the applicability of provisions of section 56(2)(vii)(b)(ii) of the Act is concerned, there is no material available on record that the Assessing Officer has carried out any inquiry/examination and sought any explanation from the assessee. Where the matter relating to applicability of provisions of section 56(2)(vii)(b)(ii) of the Act has not been examined by the AO and not subject matter of assessment order, there is no question of application of theory of merger with that of the order of the ld CIT(A) as so contended by the ld AR. We therefore find that it is a clear case where the applicability of provisions of section 56(2)(vii)(b)(ii) of the Act which are applicable for the impugned assessment year i.e. A.Y 2015- 16 has escaped the attention of the Assessing Officer which renders the order so passed as erroneous and prejudicial to the interest of the Revenue Applicability of provisions of section 56(2)(vii)(b)(ii) - All that proviso talks about is that where there is an agreement to sell which has been executed prior to the date of registration, in such cases, the stamp duty value as on the date of agreement may be taken instead of date of registration of the property provided that whole of the consideration or a part thereof has been paid by any mode other than cash on or before date of agreement. Therefore, the fact that the proviso is applicable in the instant case does not take the impugned transactions of purchase of industrial plot of lands out of the applicability of provisions of section 56(2)(vii)(b)(ii) of the Act as so contended by the ld. AR. All that it provides is that it shifts the determination of stamp duty value as on the date of agreement rather than the date of registration of the sale deed. Therefore, the contention so advanced by the ld. AR cannot be accepted. We are therefore of the considered view that it is a case where the provisions of section 56(2)(vii)(b)(ii) of the Act read with proviso thereof has not been examined by the Assessing Officer and which undisputedly applies for the impugned assessment year. Therefore, we do not find any infirmity in the exercise of justification by the ld. Pr. CIT u/s 263 - Decided against assessee.
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