Stamp Duty Value on Allotment Date Crucial for Section 56(2)(vii)(b) Addition

Dharmesh Ramesh Jhaveri Vs ACIT (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai ruled in favor of Dharmesh Ramesh Jhaveri regarding the addition of ₹50.06 lakh under Section 56(2)(vii)(b)(ii) of the Income Tax Act for Assessment Year 2017-18. The Assessing Officer (AO) had added the difference between the flat’s stamp duty value at registration and the purchase price to Jhaveri’s income, arguing that the stamp duty value on the registration date should apply. Jhaveri contended that the stamp duty value as of the flat’s allotment date in 2010, when the advance payment ...