SAURABH ASHOK AGRAWAL,NAGPUR V. DCIT/ACIT CIRCLE-2, NAGPUR

ITA 224/NAG/2025

AI Insights

The case involves Saurabh Ashok Agrawal, the appellant, who contested an addition to his income for the Assessment Year 2015-16, which was made by the Assessing Officer (AO) based on a discrepancy between the stamp duty valuation and the actual consideration paid for a property purchase. The AO added the difference as income under section 56(2)(vii) of the Income Tax Act. The appellant argued that the property was purchased in 2014, and the payments were made before the registration date, which should allow the use of the agreement date for valuation purposes as per the proviso to section 56(2)(vii). The Tribunal agreed with the appellant, leading to the deletion of the addition and allowing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 793208 (ITAT-NAGPUR)
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 05-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PANKAJ KUMAR; LD.
• Assessee Lawyers: ABHAY AGRAWAL; LD
• Keywords: Condonation of delay; Sale consideration of property below Jantri Value
• Section: 56(2)(vii)(b)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR “SMC” BENCH :: NAGPUR BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA No. 224/NAG/2025 (Assessment Year: 2015-16) Saurabh Ashok Agrawal, 203, Gulmohar Apartment, Civil Lines, Nagpur-440 001 PAN: AGIPA 1809 K Vs. DCIT/ACIT, Circle-2, Nagpur. (Appellant) (Respondent) Present for: Assessee by : Shri Abhay Agrawal, Ld. Advocate Revenue by : Shri Pankaj Kumar, Ld. CIT-D.R. Date of Hearing : 26.06.2025 Date of Pronouncement : 23.09.2025 O R D E R This appeal has been preferred by the Assessee against the order dated 20/12/2024 impugned herein passed by the Commissioner of Income Tax (Appeals)-3, Nagpur (in short, ‘Ld. Commissioner’) u/sec. 250 of the Income Tax Act, 1961 (in short, ‘Act’) for the A.Y. 2015-16. Printed from counselvise.com ITA No.224/NAG/2025 (Saurabh Ashok Agrawal) 2 2. It is observed that there is a delay of 36 days in filing the instant appeal. The Assessee has filed a sworn affidavit and mentioned the reasons for delay in filing the appeal. The reasons assigned by the Assessee for condonation of delay of 36 days, as genuine, bonafide and unintentional, delay is condoned. 3. In the instant case, during the course of assessment proceedings, it was noticed by the Assessing Officer (AO) that the Assessee had purchased a piece of land valued at Rs. 21,61,500/- vide registered sale deed dated 03/03/2015 as against the stamp duty valuation to the tune of Rs. 24,36,000/- and, therefore, added the difference amount of Rs. 2,74,500/-, between the stamp duty valuation and consideration shown by the Assessee u/sec. 56(2)(vii) of the Act, to the total income of the Assessee. The Assessee has claimed that as per oral agreement and mutual understand that the property was purchased in 2014 itself by making the following payments:- Date of payment Mode of payment Amount 04/08/2014 Cheque No.091482 1,63,850 02/09/2014 Cheque No.091483 1,11,000 01/10/2014 Cheque No.091484 1,11,000 05/11/2014 Cheque No.091485 1,11,000 03/12/2014 Cheque No.091486 1,11,000 Total 6,70,850 4. The Assessee drew the attention of this Court to the sale deed dated 03/03/2015 wherein at para 1, the aforesaid payments have Printed from counselvise.com ITA No.224/NAG/2025 (Saurabh Ashok Agrawal) 3 duly been reflected and rest of the amount has been paid in subsequent installments and, therefore, according to proviso to section 56(2)(vii) of the Act which prescribed that where the date of agreement fixing the amount of consideration for transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of agreement may be taken for the purpose of this sub-clause. 5. Thus, considering the peculiar facts and circumstances in totality, this Court is inclined to delete the addition made by the Ld.AO u/sec. 56(2)(vii)(b) which is otherwise not applicable to the Assessee’s case. Thus, the addition is deleted by allowing the appeal of the Assessee. 6. In the result, Assessee’s appeal is allowed. Order pronounced in the open court on 23.09.2025. Sd/- (NARENDER KUMAR CHOUDHRY) JUDICIAL MEMBER vr/- Printed from counselvise.com ITA No.224/NAG/2025 (Saurabh Ashok Agrawal) 4 Copy to: The Appellant The Respondent The CIT, Concerned, Nagpur The DR Concerned Bench //True Copy// By Order Senior Private Secretary ITAT, Nagpur. Printed from counselvise.com "