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2023 (9) TMI 747 - AT - Income TaxAddition u/s. 56(2)(vii) - transaction of purchase of immovable property - consideration exceeded the stamp duty value of the immovable property - difference of opinion arising between the Members - Third Member appointed for taking decision on the point of difference between the Members constituting Division Bench - HELD THAT:- Third Member has agreed with the view take by Hon'ble Accountant Member and held that the impugned addition u/s. 56(2)(vii) of the Act, is liable to be deleted. Section 56(2)(vii)(b)(ii) of the Act, being a deeming provision, it is not legally permissible to expand the scope of the said section by stating that there is round tripping of money. Ideally, AO ought to have examined the applicability of section 69 of the Act, provided there was material on record to suggest there was some payment not recorded in the books of account of the assessee (unaccounted money). However, the AO has candidly admitted in the Assessment Order that there is no material on record to suggest unaccounted money/on money was paid prior to taking possession of the impugned property. There is only an assumption and no material / evidence for making the addition. Therefore, concur with the views AM and accordingly hold that the impugned addition under section 56(2)(vii) of the Act, is liable to be deleted. Hence, answer to the above question framed in the negative and in favour of the assessee. Thus the matter may be placed before the regular Bench for an appropriate order, in accordance with law. Decided in favour of assessee.
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