Silverton Pulp And Papers Private Limited Vs DCIT (ITAT Delhi)
The Income Tax Appellate Appellate Tribunal (ITAT), Delhi bench, in the case of Silverton Pulp And Papers Private Limited Vs DCIT, set aside the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (CIT(A)/NFAC) and restored the matter for re-verification regarding an addition made under Section 56(2)(x)(b) of the Income Tax Act, 1961. The appeal was filed by the assessee, a private limited company engaged in manufacturing and trading white and kraft paper, against the CIT(A)’s order dated September 30, 2024, for the Assessment Year (A.Y.) 2021-22.
The core of the dispute originated from the assessee’s purchase of agricultural land for ₹16,57,500/−, with a stamp duty payment of ₹3,28,000/−. The Assessing Officer (AO) observed that the stamp valuation authority had valued the property at ₹46,72,000/− by treating it as residential land. Consequently, the AO invoked the provisions of Section 56(2)(x)(b) of the Act, which deals with the taxation of the difference between the stamp duty value and the actual consideration for immovable property received without consideration or for inadequate consideration, and made an addition of the differential value of ₹30,14,500/−. Separately, an ad-hoc disallowance of ₹5,00,000/− was made out of various expenses.
