Tejas C Joshi Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that addition u/s. 56(2)(vii)(b)(ii) of the Income Tax Act justified due to difference stamp duty value of the property and sale consideration. Accordingly, appeal of the assessee allowed.
Facts- The assessee had purchased a land during the year vide sale deed dated 10.03.2015 for a consideration of Rs.10,28,28,600/-. In the course of assessment, the AO found that at the time of registration of the property the assessee had paid additional stamp duty. It transpired that the matter was referred to the Deputy Collector for valuation of the property, who had valued the property at Rs.12,79,67,530/- and accordingly the assessee had paid additional stamp duty as per the revised valuation. The AO, thus, noted that the stamp duty value of the property was Rs.12,79,67,530/-, whereas the consideration paid as per sale deed was Rs.10,28,24,000/- only. The AO, therefore, added the difference amount of Rs.2,51,39,530/- as income of the assessee under the provision of Section 56(2)(vii)(b)(ii) of the Income Tax Act, 1961.
CIT(A) has allowed part relief to the assessee and the addition u/s. 56(2)(vii)(b)(ii) of the Act was restricted to Rs.1,28,54,000/- on the basis of the report of the DVO. Being aggrieved, the present appeal is filed.
