Kiran Ashok Desai Vs PCIT (ITAT Mumbai)
Addition u/s. 56(2)(x) deleted as variation between purchase price and DVO value falls within tolerance limit of 10%
ITAT Mumbai held that addition under section 56(2)(x) of the Income Tax Act not justified since value adopted by the DVO and actual purchase price declared by the assessee falls within the tolerance limit of 10%. Accordingly, appeal allowed.
Facts- During the year under consideration, the assessee received a gift of Rs. 4.77 crores from his father and the same is claimed to be exempt u/s. 56(2) (vi) of the Act. During the year, assessee had purchased an immovable residential property on 30.11.2017 alongwith his wife and son for a consideration of Rs. 4,75,03,000/-, the stamp duty valuation of the same for the purposes of section 50C was Rs.5,82,27,385/-. Based on these figures, it can be worked out that there was a gap of 22.58% between the stamp duty valuation and purchase value of the property.
In the property, the share of the assessee was 50% and rest of the share belongs to his wife and son. In the case of the assessee, PCIT issued a notice u/s. 263 of the Act on the ground that the order passed by the AO mentioned is erroneous and prejudicial to the interest of the revenue vide dated 15.02.2024. AO is accordingly directed to examine the variation between the stamp duty value and value as per DVO report of the property, considering these documents and any other evidence as required and take necessary action. Thereafter, a fresh order may be passed in accordance with the relevant provisions of law. The assessee being aggrieved with this order of the Ld. PCIT preferred an appeal before us.
