IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील स.ं / ITA No.1016/PUN/2024 Assessment Year : 2016-17 ACIT, Central Circle-1, Vs. Rajendra Rasiklal Shah, Nashik Abhayankar Towers, M.G. Road, Opp. Bata Shop, Nashik – 422 001 Maharashtra PAN : ADBPS2863H Appellant Respondent Assessee by : Shri Sanket Joshi Revenue by : Shri Arvind Desai Date of hearing : 11.02.2025 Date of pronouncement : 20.03.2025 आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER :

The captioned appeal at the instance of Revenue is directed against the order framed by ld. Commissioner of Income Tax (Appeals) Pune-12, dated 26.02.2024 passed u/s.250 of the Income Tax Act, 1961 ( in short ‘the Act’) which inturn is arising out of the Assessment Order dated 20.09.2021 passed u/s.147 r.w.s.144B of the Act.

2. Brief facts of the case are that the assessee is an individual and is engaged in the business of Developer. For the A.Y. 2016- 17, e-return was filed on 17.10.2016 declaring income of Rs.67,50,160/-. Case processed u/s.143(1) of the Act. Thereafter, based on the information that assessee along with 5 other persons have entered into an Agreement to purchase an immovable property for a consideration of Rs.72.00 lakh which was registered under Amnesty Scheme on 06.02.2016, the value of the property as on 06.02.2016 as per Circle/Guidelines Rates for Stamp Duty purpose was Rs.19,85,97,000/-. Since the assessee had paid only Rs.10.00 lakh for his share of 25% in the property, ld. AO was of the view that in terms of section 56(2)(vii)(b) of the Act an amount of Rs.4,96,49,250/- deserves to be added in the hands of assessee. In the course of assessment proceedings which was carried out after validly serving notices u/s.143(2) and 142(1) of the Act, the assessee claimed that on 12.08.1997 unregistered agreement was entered into with the seller of the property and part consideration was paid through banking channel but the balance amount was payable since some contractual obligations on part of the seller regarding updation of land revenue records with names of original owners and obtaining relevant permissions were to be carried out. The assessee got the possession of the land on 25.01.2001. Finally, the contractual obligations by seller were completed in the year 2014 but till that time as the assessee had not paid the remaining consideration in the year 1997, the purchase consideration was revised to Rs.72.00 lakh and the same was paid through banking channel on the dates falling during the period 04.10.2014 to 09.09.2015. Based on these facts, it was stated before the AO that the value of the property should be considered on the basis of the date of entering the first agreement dated 12.08.1997 and since consideration paid by the assessee and the co-owners is more than the valuation of the said property, i.e. Rs.63,88,500/- accepted by Collector, Nashik, no addition is called for. But ld. AO was not satisfied with these contentions and was of the considered view that value of the property as on 06.02.2016 at Rs.19,85,97,000/- is to be adopted as purchase consideration as the registered agreement has been entered into on this date and accordingly made addition of Rs.4,86,49,250/- u/s.56(2)(vii)(b) of the Act along with other minor disallowances and assessed income at Rs.5,54,08,500/-.

3. Aggrieved assessee preferred appeal before the CIT(A) who after considering the submissions of the assessee and also placing reliance on the decision of this Tribunal dated 19.07.2022 passed in the case of one of the co-owners, namely Shri Pravinchandra Walchand Shah accepted the assessee’s contention that part payment made on 08.01.1997 is to be considered and held that First and Second proviso to section 56(2)(vii)(b) of the Act shall be applicable in the instant case and date of agreement fixing the consideration of Rs.30.00 lakh for the transfer of immovable property is to be