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TMI Blog2019 (7) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... red in making an addition of Rs. 34,23,542/- under section 56(2)(vii)(b)(ii) of the I.T. Act on account of suppression of purchase price of land in the hands of the assessee appellant. 1.1 That on the law and in the facts and in the circumstances of the case the learned lower authorities grossly erred in not considering the submissions made by the assessee appellant that the said purchase is stock-in-trade and is not a capital asset and hence provisions of section 56(2)(vii)(b)(ii) are not attracted, has dismissed the appeal of the assessee without even bothering to look at the statutory provision. 1.2 That the learned lower authorities grossly erred in adopting the total purchase price at Rs. 49,23,542/- as against total registry val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopting the full value of sale consideration as adopted by the stamp authority and added the difference amount Rs. 34,23,542/- in the hand of assessee appellant as deemed income of the assessee u/s. 56(2)(vii)(b)(ii) of the Act 5. By the impugned order of the ld.CIT(A), the ld. CIT(A) confirmed the action of the AO by observing that the property is defined in very specific way in the definition by mentioning " property ", which means both agricultural land and non-agricultural land. Accordingly, the order passed by the AO was confirmed by the ld. CIT(A). 6. The ld. AR vehemently argued that the appellant assessee is engaged in real estate business in Jhunujhunu District and regularly deals in sale and purchase of lands and buildings a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ............................................... (i).......................................................... (ii)........................................................... Provided that where the stamp duty value of immovable property as referred to in sub-clause (b) is disputed by the assessee on grounds mentioned in sub-sectio (2) of section 50C, the Assessing Officer may refer the valuation of such property to a Valuation Officer, and the provisions of section 50C and sub-section (15) of section 155 shall, as far 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply to stock-intrade, raw material and consumable stores of any business 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 suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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