Rachit Baid Vs ITO (ITAT Kolkata)
Stamp-Duty Value Is Not the Final Word: AO Must Refer Valuation to DVO When Purchaser Disputes It
The Kolkata Bench of the ITAT has held that where an assessee disputes the stamp-duty value adopted for a purchased property and expressly requests a reference to the Departmental Valuation Officer, the AO cannot mechanically adopt the value appearing in the sale deed or Sub-Registrar’s records. The prescribed valuation procedure must be followed before the difference can be assessed as income u/s 56(2)(x).
The assessee, Mr. Rachit Baid, filed his return of income for AY 2024-25 declaring a total income of ₹27,34,310. During the relevant year, he purchased an immovable property. The purchase consideration recorded in the sale deed was lower than the fair market value adopted or assessed by the stamp-valuation authority.
The case was taken up for assessment, and the proceedings were ultimately completed ex parte u/s 144 r.w.s. 144B on 03-02-2026. The AO adopted the stamp-duty value appearing in the registered instrument and compared it with the actual consideration stated in the purchase deed.
The difference of ₹9,77,278 was treated as income chargeable under the head “Income from Other Sources” by invoking section 56(2)(x).
