Sri Ashok Kumar Muraka Vs ITO (ITAT Chennai)
The assessee appealed against the order dated 27.01.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, arising from the reassessment order passed under Section 147 read with Section 144B of the Income-tax Act, 1961 on 31.03.2022 for Assessment Year 2016-17.
The assessee had filed the return of income on 12.03.2017, declaring total income of ₹5,30,500.
The assessment was reopened on the ground that there was a difference of ₹33,11,285 between the registered value and the market value of an immovable property purchased by the assessee, which, according to the Assessing Officer, was liable to tax under Section 56(2)(vii)(b) of the Act.
The record showed that the assessee made a payment of ₹1,00,000 through an account payee cheque on 08.10.2009 and subsequently entered into an agreement for sale dated 20.10.2011, in which the sale consideration was fixed and the property to be conveyed was identified. The sale deed was later registered for a consideration of ₹9,73,215, whereas the market value on the date of registration was ₹42,84,500. Based on this difference, the Assessing Officer invoked Section 56(2)(vii)(b) and made an addition of ₹16,55,642, which was confirmed by the CIT(A).
