Manjit Singh Baxisingh Dev Vs INT Tax (ITAT Mumbai)
In Manjit Singh Baxisingh Dev Vs INT Tax, the Income Tax Appellate Tribunal (ITAT), Mumbai, considered issues relating to condonation of delay, addition under Section 56(2)(vii)(b), indexation of cost of acquisition, and addition under Section 69 of the Income Tax Act for Assessment Year 2015-16.
The assessee filed an appeal against the order passed under Section 144C(5) of the Income Tax Act. The appeal before the Tribunal was delayed by 113 days because the assessee had initially filed the appeal before the Commissioner of Income Tax (Appeals) instead of the ITAT due to a bona fide procedural mistake. The CIT(A) had heard the matter and passed an order deleting the additions, but later issued a rectification notice stating that the appeal was not maintainable before that forum. The assessee then approached the ITAT. The Tribunal condoned the delay, observing that the mistake was bona fide and relying on the Supreme Court decision in Collector, Land Acquisition v. Mst. Katiji.
The first substantive issue concerned an addition of Rs. 1,16,142 under Section 56(2)(vii)(b) on account of the difference between the stamp duty value and the agreement value of a property purchased by the assessee. The assessee had purchased a flat for Rs. 50,78,858, while the stamp duty value was Rs. 51,95,000, resulting in a difference of approximately 2.3%. The Assessing Officer treated the difference as income from other sources. The assessee argued that the difference was within the tolerance band recognized under later amendments to the law, which allowed variation up to 5% and subsequently 10%.
