Case Law Details
DCIT Vs B. E. Billimoria & Co. Ltd. (ITAT Mumbai)
The material on record would show that the assessee being resident corporate assessee was assessed for the year under consideration u/s. 143(3) on 27/10/2017. During assessment proceedings, it transpired that the assessee sold an office premises vide agreement dated 31/03/2015 for a consideration of Rs. 19 Crores and offered short-term capital gains of Rs.11.49 Crores. However since the stamp duty value of the premises was Rs.20.59 Crores, Ld. AO invoking the provisions of Sec.50C, added the differential amount of Rs.1.59 Crores to the income of the assessee.
Before Ld. CIT(A), the assessee drew attention to the fact that it incurred aggregate expenditure of Rs.160.26 Lacs on account of stamp duty, registration charges and society transfer fees as per the contractual terms which was an allowable expenditure u/s 50(1)(i) of the Act. The said claim was restricted to Rs.159.23 Lacs i.e. to the extent of difference in Stamp Duty Value and actual sale consideration. Therefore, it was submitted that there was no justification for addition of Rs.159.23 Lacs. Concurring with the same, Ld. CIT(A) directed Ld. AO to delete this addition.
FULL TEXT OF THE ITAT JUDGEMENT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
