Ankit Bharat Sheth Vs ITO (ITAT Mumbai)
Background and Reassessment Proceedings
The appeal was filed by the assessee against the order dated 09.03.2026 passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi for Assessment Year 2018–19. The assessee challenged the validity of the reassessment proceedings under sections 147, 148A and 148 of the Income-tax Act, 1961, as well as an addition of Rs. 38,64,335 under section 56(2)(x).
The assessee had filed his return of income on 27.07.2018 declaring total income of Rs. 2,39,900. During reassessment, the Assessing Officer noticed information on the Insight Portal showing that an immovable property had been purchased for Rs. 57,00,000, while the stamp duty authority had valued it at Rs. 95,64,335. The difference of Rs. 38,64,335 was consequently treated as income under the head “Income from Other Sources” under section 56(2)(x).
The assessee stated that the property had originally been allotted by the developer on 06.12.2014, when substantial consideration had been paid through banking channels. According to the assessee, the consideration had been fixed on the allotment date and the first proviso to section 56(2)(x) required the stamp duty value as on that date to be considered. The assessee further stated that the stamp duty valuation on 06.12.2014 did not exceed the agreed consideration.
