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2021 (8) TMI 160 - AT - Income TaxAddition u/s 56(2)(vii)(b) - stamp duty value consideration - stamp duty value on the date of registration of the property different from the stamp duty value at the time of agreement entered into during financial year - assessee argued that agreements with respect to purchase of properties were entered into earlier years. - HELD THAT:- The undisputed position that emerges is that the assessee initially booked two flats during financial year 2007-08 and paid booking amount to the builders. The booking was duly supported by the allotment letters and the booking amount was paid through banking channels at the time of booking. Later on during financial year 2011-12, after visiting the site, the assessee requested for change of location of flats having same area and same consideration which was acceded to by the builder. Accordingly, new allotment letters were issued by the builders which bear the requisite particulars viz. flat nos. consideration, area, fact of possession etc. These facts have been confirmed by the builder also in reply to summons issued by Ld. AO. It was not a case of new booking but a case wherein the assessee had merely exchanged the flats at the same site to have better location. The area as well as sale consideration was the same and the new flats got substituted from the date of initial booking which is evident from the conduct of the parties.This being the case, the provisions of Sec. 56(2)(vii)(b) as applicable from 01/04/2014 could not have been applied by Ld. AO Proviso to this sub-section provides that where the date of agreement fixing the amount of consideration for the transfer of immoveable property and the date of registration are not the same then the stamp duty value prevailing on the date of agreement may be taken for the purpose of this sub-clause. The said proviso would, alternatively, be applicable to the fact of the case since the consideration has been paid by the assessee though banking channels in terms of requirements of second proviso. Nevertheless, since the provisions of Sec. 56(2)(vii)(b) has been held to be not applicable, the additions made by Ld. AO invoking the said provisions would be unsustainable in law as held by Ranchi Tribunal in Bajrang Lal Naredi [2020 (1) TMI 1359 - ITAT, RANCHI] Thus the additions as made by Ld. AO could not be sustained in law. By deleting the entire addition, we allow ground nos.1 & 2 of assessee’s appeal
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