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July 2025

Sec 56(2)(vii)(b)(ii): Addition on account of difference between stamp duty value and purchase consideration for agricultural land made under a provision which was introduced subsequently – AO could not apply amended provision retrospectively – Further, payment of actual consideration duly established – Addition unsustainable.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 3 mins

27 [2025] 122 ITR(T) 312 (Lucknow- Trib.)

Smt. Vimla Tripathi vs. ITO

ITA NO.: 310 (LKW.) OF 2023

A.Y.: 2013-14 DATE: 31.12.2024

Sec 56(2)(vii)(b)(ii): Addition on account of difference between stamp duty value and purchase consideration for agricultural land made under a provision which was introduced subsequently – AO could not apply amended provision retrospectively – Further, payment of actual consideration duly established – Addition unsustainable.

FACTS:

The assessee filed her return of income for the AY 2013-14. Subsequently, based on third-party information, the Assessing Officer noticed that the assessee, jointly with another person, had purchased an agricultural land on 01.08.2012 for a declared consideration of ₹12,00,000.

The AO observed that the market value of the land for stamp duty purposes was ₹71,30,000. Upon response from the assessee to notices u/s 142(1), she provided documentary evidence showing details and modes of payment, copies of bank statements and the sale deed.

Finding a discrepancy of ₹59,30,000 between the sta

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