Amit Gajanan Khedekar Vs ITO (ITAT Mumbai)
Section 50C Rulings Not Applicable to Section 56(2)(x) in MHADA Property Case; ITAT Sends Property Valuation Issue to DVO While Upholding Taxability Under Section 56(2)(x); ITAT Upholds Section 56(2)(x) on MHADA Leasehold Property Purchase; ITAT Distinguishes Section 50C Judgments While Confirming Addition Under Section 56(2)(x).
In a case before the Mumbai bench of the Income Tax Appellate Tribunal (ITAT), the assessee challenged the addition made under Section 56(2)(x) of the Income Tax Act in relation to the purchase of a room/tenement situated in Siddhi Sadan Building at Elphinstone Road, Mumbai. The assessee had filed the appeal with a delay of 280 days, which was condoned by the Tribunal after considering the explanation provided through a notarized affidavit.
The assessee had purchased rights in a room/tenement for ₹32.50 lakh. The property was situated in a building constructed on leasehold land owned by MHADA, and the seller had obtained rights through an allotment letter issued by MHADA. During scrutiny assessment for AY 2018-19, the Assessing Officer (AO) found that the stamp duty valuation authority had determined the market value of the property at ₹53.35 lakh, resulting in a difference of ₹20.85 lakh between the stamp duty value and the actual consideration paid. The AO treated this difference as income from other sources under Section 56(2)(x) and added it to the assessee’s income.
