Balakrishna Venkapppa Bhandary Vs DCIT (ITAT Mumbai)
The appeal was filed by the assessee against the order dated 24 July 2024 passed by the CIT(A)/NFAC for AY 2018-19, concerning an addition of Rs.26,98,035 under Section 56(2)(x) in relation to purchase of an immovable property. The assessee had booked Flat No. 2102, Oberoi Prisma, Mumbai, in June 2016. The initial booking amount of Rs.56,69,238 was paid on 22 June 2016, while the agreement for sale was subsequently registered on 28 September 2017 for Rs.5,30,87,707. The stamp duty value determined at the time of registration was higher. The assessee contended that the stamp duty value applicable on the date of allotment/first payment should be considered. According to the assessee, the stamp duty value on that date was Rs.5,67,18,369, making the difference from the agreement value fall within the 10% tolerance limit introduced under Section 56(2)(x)(b)(ii) with effect from 1 April 2021.
The assessee also disputed being treated as a co-owner. It was submitted that the property was actually purchased by his wife, that his name was included for succession purposes, and that payments made by him were loans or payments on behalf of his wife. The Assessing Officer, however, considered the payment ratio and treated the assessee as having contributed 38.38% towards the property, applying that ratio to the difference between the purchase consideration and stamp duty value and adding Rs.26,98,035 as income from other sources. The CIT(A) upheld the position.
