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2023 (11) TMI 435 - ITAT DELHIAddition u/s 56(2)(vii)(b) - difference between circle rate and actual amount paid for purchase of land - Assessee argued that land was purchased for the purpose of business and the same was shown as stock in trade as brother of assessee being co-owner was under treatment for some serious illness during F.Y. 2016-17 and impugned addition has been made by recording incorrect facts and findings and in violation of principles of natural justice - HELD THAT:- The land was purchased by assessee and his brother on 10.12.2013 during F.Y. 2013-14 and even after laps of 3 years up to A.Y. 2015-16 except signing MOU no other action had been taken by the assessee and his brother showing their intention to develop the land as a business venture. Expect signing an MOU, there is no action or evidence on record by the assessee and his co-owner brother after laps of three years till his co-owner brother fall ill. There is no other documentary evidence to show that the Shri Safdar Hussain Khan[brother] is continuously sick till date. There is no action or efforts by the assessee and his brother before illness of his co-owner brother to show that the assessee and his brother formed any partnership firm or LLP entity or Company for said business venture and showing any action to apply for any approvals or permissions from the Government Authorities regarding development of land as a Multistory Commercial/Residential Project. Therefore, we are inclined to hold that the benefit of order of Ashok Agarwal HUF [2020 (8) TMI 94 - ITAT JAIPUR] is not available for the assessee in the present case. We reach to a logical conclusion that the AO was right in making addition by invoking provision under section 56(2)(vii) of the Act as a land in question was a capital asset and the same was not kept as stock-in-trade by the assessee and his co-owner brother. Appeal of assessee is dismissed.
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