9911796707
TMI Blog2024 (10) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... 5% of the total land, hence, in his hand, he deemed as an unexplained investment HELD THAT:- We are of the view that this addition is not sustainable because the assessee is a vendee and not the vendor. Section 56(2)(vii) of the Income Tax Act has been introduced in the Statute Book by the Finance Act, 2013 w.e.f. 1st April, 2014. This section provides deeming fiction of deemed gift. Subclause (vii) of section 56(2) would contemplate that if a vendee purchased a property, for example, Rs. 100/- and Stamp Duty Valuation Authority has determined the value of such property at Rs. 150/-, then purchase cost would be deemed equivalent to Rs. 150/- and the difference between both is to be added under the head deeming gift in the hands of the purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, no one has come present on behalf of the assessee. Shri Rakesh Kumar, Advocate, had appeared earlier and sought adjournment on behalf of the assessee, but on 24.09.2024, he expressed no instruction on behalf of the assessee. Therefore, with the assistance of ld. D.R., we have gone through the record carefully and proceed to decide the appeal ex-parte qua the assessee. 3. Though the assessee has taken ten grounds of appeal, but in substance, solitary grievance of the assessee is that ld. CIT(Appeals) has erred in confirming the addition of Rs. 42,39,000/-, which was made by the ld. Assessing Officer in an assessment order passed under section 144 read with section 147 of the Income Tax Act. The assessee in other grounds has raised number ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which Stamp Duty was charged. In other words, for example, full value of consideration in a sale deed is determined at Rs. 100/-, but Stamp Duty Valuation Authorities have charged the same at Rs. 150/-, then, for the purpose of computing capital gain under section 48 of the Income Tax Act, the full value of the property would be construed at Rs. 150/-. This deeming fiction is provided in section 50C of the Income Tax Act. The ld. Assessing Officer made a reference to section 50C and observed that full value of sale consideration is being taken at Rs. 1,69,56,000/-. Since the assessee has purchased 25% of the total land, hence, in his hand, he deemed as an unexplained investment of Rs. 42,39,000/-. Accordingly, he made the addition. 6. On ..... X X X X Extracts X X X X X X X X Extracts X X X X
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