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TMI Blog2019 (4) TMI 1025X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by stamp duty valuation done by the State authorities, then in such circumstances, the Assessing Officer may refer the valuation of such property to Valuation Officer. The assessee before the AO and also before the CIT(A) has pleaded that the value adopted for stamp duty purposes exceeded the fair market value of property as on the date of purchase and had submitted not only the evidence of circular rate at the relevant time but also valuation report by the registered valuer, which was filed before the Assessing Officer and CIT(A), then in such circumstances, it was incumbent upon the Assessing Officer to refer the matter to the District Valuation Officer in order to determine the fair market value of the property as on the date of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w under the provisions of section 56(2)(vii)(b) of the Act. 4. Briefly, in the facts of the case, the assessee was an employee of Marathwada Mitramandal s College of Engineering. The Assessing Officer noted that during the year under consideration, the assessee had purchased immovable property, wherein the market value was ₹ 1,60,00,000/-. However, valuation adopted by the stamp valuation authority was ₹ 1,80,74,000/-. The Assessing Officer issued show cause notice to the assessee. The Assessing Officer mentioned in that show cause notice that there was difference in consideration mentioned in purchase agreement and the value adopted by stamp valuation authority. The second related point which was raised was that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Assessing Officer that it can furnished the valuation report on record demonstrating the rate of flats in that area being similar to the rate at which the assessee purchased. However, this fact was not accepted and the Assessing Officer made addition. 5. Before the CIT(A), the assessee pointed out that provisions of section 56(2)(vii)(b) of the Act were introduced by the Finance Act, 2013 w.e.f. 01.04.2014, which provided that where an individual or HUF receives any immovable property, for consideration which was less than the stamp duty value of the property by an amount exceeding ₹ 50,000/-, the stamp duty value of such property as exceeding such consideration shall be taxed as Income from other sources . The assessee agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contentions and perused the record. The issue which arises in the present appeal is in relation to application of provisions of section 56(2)(vii)(b) of the Act. Under the said provisions of section 56(2)(vii)(b) of the Act, incomes are enlisted which are chargeable to income tax under the head Income from other sources . Section 56(2)(vii)(b) of the Act refers to an immovable property, wherein (i) it has been received without consideration and where stamp duty value of the said property exceeds ₹ 50,000/- and (ii) for consideration which is less than stamp duty value of property by an amount exceeding ₹ 50,000/-, then the difference between stamp duty value of property and the consideration is to be added in the hands of asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld apply as mentioned in the said section. The said provisions of section 50C(2) of the Act are to be applied in the hands of seller of capital asset. The corresponding provisions are made for assessing difference between the stamp duty valuation as done by State authorities and the consideration mentioned in the document, in the hands of purchaser as per section 56(2)(vii)(b) (c) of the Act. However, in respect of sub-clause (b), the proviso very clearly provides that the provisions of section 50C(2) of the Act are to be applied and where the assessee is aggrieved by stamp duty valuation done by the State authorities, then in such circumstances, the Assessing Officer may refer the valuation of such property to Valuation Officer. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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