Property value rose before registration; ITAT scraps Rs 11.35 lakh tax on buyer

 Under Section 56(2)(x), there is applicable taxation of such a difference in the buyer’s hands if the stamp duty value of the property is higher than the purchase consideration by more than the greater of Rs 50,000 or 10% of the consideration. Here, the difference of approximately Rs 22.71 lakh exceeded 10% of the agreed purchase price of Rs 1.23 crore. Under Section 56(2)(x), there is applicable taxation of such a difference in the buyer’s hands if the stamp duty value of the property is higher than the purchase consideration by more than the greater of Rs 50,000 or 10% of the consideration. Here, the difference of approximately Rs 22.71 lakh exceeded 10% of the agreed purchase price of Rs 1.23 crore.