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2021 (8) TMI 800 - AT - Income TaxAddition u/s 56(2)(vii)(b) - valuation of land purchased by assessee - deemed gift under section 56(2)(vii)(b)(ii) - difference between the sale consideration shown by the assessee vis-a-vis the value determined by the stamp duty valuation authority - contention of the assessee is though initially it could be said that the land was purchased by the assessee but ultimately in reality this transaction never materialised rather to some extent it was a fraud upon the assessee - HELD THAT:- As it is ascertainable whether any capital gain tax was levied in the hands of the vendor on the strength of section 50C,First Appellate Authority did not appreciate these facts rather swept away with the facts that the assessee continued to make payment inspite of this dispute. On the strength of this point, it appears that the ld. First Appellate Authority has construed that sale transaction has taken place at a lower rate and, therefore, a deemed gift is to be assumed in the hands of the assessee. However, after going through the material on record including copies of revenue record entries we are satisfied that actually no transaction has been materialised for which it could be assumed that deemed gift is assessable in the hands of the assessee. In view of the above discussion, we allow this appeal and delete the addition done by the Assessing Officer with the aid of section 56(2)(vii)(b) (ii) - Decided in favour of assessee.
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