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ITAT Mumbai – Addition U/s 56(2)(x) Deleted; 10% Safe Harbour Applied on Property Purchase
Case Law Details
- Case Name
- Nakoda Developers Vs DCIT (ITAT Mumbai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2018-19
- Courts
- All ITAT, ITAT Mumbai
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Nakoda Developers Vs DCIT (ITAT Mumbai)
The assessee, a real estate developer, purchased property for ₹3.25 cr whereas stamp duty value was higher. The AO invoked sec. 56(2)(x) and added ₹1.14 cr being difference between stamp value and purchase consideration. During appeal, based on DVO’s preliminary valuation, CIT(A) reduced addition to ₹28.66 lakh.
Before ITAT, the Tribunal noted that statutory tolerance band of 10% applies while comparing actual consideration and valuation. Following judicial precedents treating this provision as beneficial and retrospective, ITAT ...
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