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2023 (8) TMI 27 - ITAT AHMEDABADAddition u/s 56(2)(vii)(b)(ii) - higher valuation of land by Sub-Registrar - reckoning of stamp duty valuation - reverse calculation for arriving at the stamp duty valuation by applying stamp duty rate @ 4.9% - AR submitted that the provisions of Section 56(2)(vii)(b)(ii) inserted by Finance Act 2013-14 and was given assent by the Parliament on 10.05.2013 whereas registration formalities of the property were completed on or before 10.05.2013 and AO as well as the CIT(A) was not right in making reverse calculation for arriving at the stamp duty valuation by applying stamp duty rate @ 4.9% as the provisions of Section 50C does not empower AO to work out stamp duty valuation by making reverse calculation - HELD THAT:- The registered banakhat agreement with M/s. Durga Ricol Industries Pvt. Ltd. dated 24.09.2010 and the order passed by the Deputy Collector, Dholka and Mamlatdar, Sanand dated 24.02.2011 and 17.02.2011 clearly set out the position of the assessee and its co-owners in respect of the Survey No. 139, 140, 141 and 142. Clearance from GIIC and PF Department entry also highlights that the agreement for purchase of property in question was actually entered into with the seller on 10.06.2010 and the stamp duty value has to be reckoned from the date of agreement for purchase of property and not from the date of registration as provided in the law. The submission of AR appears to be justifiable and in fact the Revenue, in one of the co-owners case i.e. Shri Ashok Natvarlal Patel (CIT(A)’s order dated 14.03.2019) has taken a view that the stamp duty valuation of the property mentioned hereinabove prevailing on 23.06.2010 should be adopted. Thus, the Assessing Officer as well as CIT(A) was not correct in making the addition. Thus, Ground Nos. 1 to 3 are allowed.
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