Rupal Nirav Shah Vs DCIT (ITAT Surat)
The appeal before the Income Tax Appellate Tribunal, Surat Bench concerned an addition made under section 50C of the Income-tax Act, 1961 for Assessment Year 2018–19. The assessee had filed her return declaring total income of ₹67.52 lakh. During the relevant year, she jointly sold an immovable property with her husband for a declared consideration of ₹1.44 crore. The Assessing Officer noted that departmental information from the Sub-Registrar/Stamp Valuation Authority reflected the property value at ₹1.82 crore and, on that basis, invoked section 50C to substitute the sale consideration. The assessee’s share of the alleged difference, amounting to ₹19,21,024, was added to her income, and the assessment was completed at ₹86.73 lakh.
Before the Assessing Officer, the assessee explained that the sale consideration was in accordance with the jantri value, the document was registered without any demand for additional stamp duty, and the declared value had been accepted by the stamp authority. However, the explanation was rejected on the ground that the higher figure represented the composite value of land and building. The Commissioner (Appeals), NFAC, upheld the addition.
On further appeal, the Tribunal examined the valuation records issued by the Sub-Registrar. It found that the calculation statement of valuation mentioned the property value at ₹1,36,53,115 and that the actual sale consideration was ₹1,44,00,000, on which stamp duty had been duly paid. The Tribunal observed that the addition arose due to a typographical error in the departmental records and that there was no difference between the value accepted by the stamp authority and the sale consideration declared by the assessee. Since the sale price exceeded the jantri value and the document had been registered without any additional stamp duty liability, the conditions for invoking section 50C were not satisfied. Accordingly, the Tribunal held that no addition was warranted and allowed the assessee’s appeal. The order was pronounced on 23 January 2026.
