Jashoda Khimji Bhadra Vs ITO (ITAT Mumbai)
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) heard an appeal filed by the assessee, Jashoda Khimji Bhadra, against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the Assessment Year (A.Y.) 2017-18.
The appeal primarily challenged an addition of ₹8,60,000/- made by the Assessing Officer (AO) under Section 56(2)(vii)(b) of the Income-tax Act. This section deals with the difference when the stamp duty value of an immovable property exceeds the actual consideration paid for its purchase. In this case, the assessee purchased the property for ₹93,37,500/-, while the stamp valuation authority valued it at ₹1,01,97,500/-, resulting in a difference of ₹8,60,000/-.
The assessee raised two main arguments against the addition: first, that the property was purchased jointly, and adding the entire difference in the assessee’s hands without apportionment to the co-owner led to double addition; and second, that the CIT(A) erred by dismissing the appeal in limine for non-prosecution without considering the merits.
During the ITAT hearing, the Authorized Representative (AR) confirmed that the flat was jointly purchased by the assessee and M/s. Khimji Ladharam Bhadra (HUF) via a sale deed dated March 31, 2016. The AR submitted that in the hands of the co-owner, M/s. Khimji Ladharam Bhadra (HUF), the Revenue had already made an addition of 50% of the difference, which amounted to ₹4,30,000/-. Furthermore, the co-owner had accepted this 50% addition and did not challenge it.
