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2021 (2) TMI 318 - AT - Income TaxNature of Gain on property sold by HUF - guidance value as on the date of registration was higher than the agreement value because of which the difference was added in the hands of assessee - consideration paid by assessee HUF less than the stamp duty valuation - addition as income chargeable to tax u/s 56(2)(vii) - disallowance under section 50C - HELD THAT:- In present facts, there is a consideration paid by assessee HUF, to the vendor (individual member of HUF) in respect of the subject property that is less than the stamp duty valuation. As contended by the Ld. AR that, the transaction is exempt from tax as the transferor and transferee are "relative" as defined in Clause (e)(ii) to 3rd proviso to section 56(2)(vii) of the Act. By Finance Act, 2012, the definition of "relative" also include any sum or property received by a Hindu undivided family from its members. This contention of the Ld. AR that HUF can receive property without attracting tax liability from its members deserves to be upheld. Admittedly the transferor and the transferee in the present facts of the case is the Karta, his individual capacity and the HUF itself. Therefore, the argument that, property received by HUF from its members, is not chargeable to tax. CIT(A) relied on provisions of section 50C to consider the value adopted by stamp duty authority on the date of agreement. This provision is applicable in case of recipient of sale consideration. Present case, assessee is the purchaser. We therefore reject applicability of Section 50 C to present facts. Revenue is therefore debarred to hold the transaction under section 56(2)(vii)(b) as taxable. We thus delete the addition sustained by Ld. CIT(A). - Decided in favour of assessee.
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