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The Revenue has filed appealand raised grounds mostly on application of ss. 50C and 56(2)(vii)(b) of the Act. The contention of the Revenue is that ss. 50C and 56(2)(vii)(b) are independent provisions related to different situations and the case law decided for application of s. 50C cannot be applied for deciding the issue relating to the provisions of s. 56(2)(vii)(b) of the Act. The learned Departmental Representative further submitted that the issue involved in this case is the applicability of s. 56(2)(vii)(b) and argued that the decision rendered in the context of s. 50C is not relevant in the instant case.

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Sec. 56(2)(vii)(b) of Income Tax Act, 1961—Purchase of immovable property—The AO is not permitted to invoke the provisions of section 56(2)(vii)(b)(ii) in the absence of sub clause (ii) in the Act as on the date of agreement- The agreement was entered prior to insertion of the provisions of s.56(2)(vii)(b) and the sale deed was registered subsequent thereto, therefore, respectfully the provisions of s.56(2)(vii)(b) are not applicable to the assessee and it was directed to the Assessing Officer to delete the entire addition - The department has not made out any case of application of 56(2)(vii)(b) and since the provisions of section 56(2)(vii)(b)(ii) were not available in the statute as on the date of entering into the agreement, the same cannot be made applicable to the assessee and the department has not brought any evidence to show that there was extra consideration paid by the assessee over and above the sale agreement or sale deed - ASSTT. CIT V/s ANALA ANJIBABU - [2020] 28 ITCD Online 037 (ITAT-VISAKHAPATNAM)