Section 56(2)(vii) Not Applicable on Leasehold Properties – ITAT Delhi

Rajesh Kumar Sharma Vs CIT(A)/NFAC (ITAT Delhi) Rule of Lenity as a Boon for Assessees [CIT vs. Vegetable Products Ltd. (1973)] – The appeal concerns an addition of ₹21,95,375 made by the tax authorities, representing the difference between Sharma’s actual purchase price of a flat (₹33,76,625) and the stamp duty valuation (₹55,72,000). – The addition was made under Section 56(2)(vii) of the Income Tax Act, which is relevant for cases where the stamp duty value of property exceeds the actual transaction price, similar in nature to Section 50C which applies to capital gai...