Ramesh Dnyandeo Dhuri Vs ITO (ITAT Mumbai)
The appeal of Ramesh Dnyandeo Dhuri before the Income Tax Appellate Tribunal (ITAT), Mumbai arose against the order passed by the National Faceless Assessment Centre (NFAC), Delhi for the Assessment Year (AY) 2018-19. The primary issue involved an addition of Rs. 4,84,000 under Section 56(2)(x)(b)(B) of the Income-tax Act, 1961, due to a discrepancy between the actual consideration paid for a property and its stamp duty valuation.
Background Facts
The assessee, an individual earning salary, pension, and income from mutual funds, had declared a total taxable income of Rs. 5,23,400, claiming deductions under Sections 80C, 80D, 80TTA, and 80G. The case was selected for scrutiny after the sub-registrar office informed the tax department about potential discrepancies under Sections 50C and 56(2)(vii).
The Assessing Officer (AO) issued notices under Section 143(2) and 142(1) to verify the difference between the sale consideration and the stamp duty valuation. The District Valuation Officer (DVO) report, submitted after the assessment, determined the fair market value at Rs. 64,84,000 against the actual consideration of Rs. 60,00,000, resulting in an addition of Rs. 4,84,000 under Section 56(2)(x)(b)(B).
The CIT(Appeals) partly allowed the appeal, directing the AO to determine liability as per the DVO’s report, which was later contested by the assessee before ITAT.
