TMI Blog2019 (7) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication to the property which is in the nature of a capital asset of the recipient and therefore would not apply to stock-in-trade, raw material and consumable stores of any business of such recipient. However, a property is defined in a very specific way, which includes agricultural and non-agricultural land or both. It appears that the lower authorities have not properly appreciated the relevant provisions of the Act with regard to the land purchased by the assessee, which is part of stock-in-trade. In the substantial interest of justice, we restore the matter back to the file of the AO for deciding the matter afresh after giving due opportunity of hearing to the assessee. - Appeal of assessee is allowed for statistical purpose. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and purchased by the assessee appellant. 1.3 That the learned lower authorities grossly erred in relying upon the DLC value adopted by the sub-registrar and in ignoring the facts of the instant case. 1.4 That the learned lower authorities grossly erred in not considering the fact that some litigation is pending in the civil court with relates to the property and the property was under heavy dispute therefore purchased under the actual market value but the learned lower authorities grossly erred in taking it otherwise. 2. The appellant craves to add, alter, modify or amend any ground on or before the date of hearing. 3. Rival contentions have been heard and record perused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l estate business in Jhunujhunu District and regularly deals in sale and purchase of lands and buildings and hence provisions of section 56(2)(vii)(b)(ii) are itself not applicable in the instant case as the said provision would come into consideration only in case of purchase of capital asset, which is not the case in the instant case. He also read the provisions of section 56(2)(vii)(b) of the Act, which extracted as under:- ( vii) where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009 [ but before the 1st day of April, 2017]- ( a) . ( b) Any immovable proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as may be, apply in relation to the stamp duty value of such property for the purpose of sub-clause (b) as they apply for valuation of capital asset under those sections: Provided further that this clause shall not apply to any sum ( a) . ( b) , or ( c) ., or ( d) .., or ( e ) to (h) . Explanation- For the purposes of this clause,- ( a) assessable shall have the meaning assigned to it in the Explanation 2 to sub-section(2) of section 50C: ( b) fair markert value of a property, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of such recipient. 8. The ld.AR also contended that there is no such allegation of laundering of unaccounted income by the AO, hence invocation of provision of sec. 56(2)(vii) is bad in law. He contended that the AO has not bothered to refer the matter to the DVO, before invoking the provision. 9. On the other hand, the ld. DR relied on the orders of the authorities below. 10. I have considered the rival contentions and carefully gone through the orders of the authorities below. The provisions of section 56(2)(vii) were introduced as a counter evasion mechanism to prevent laundering of unaccounted income. The provisions were intended to extent the tax net to such transactions in kind. The in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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