In case of Encumbered Property, Stamp Duty value cannot be adopted as Sale Value

Sir Mohd. Yusuf Trust, Nhava House Vs ACIT (ITAT Mumbai) FACTS – Income of assessee is assessed as AOP. ROI for AY 2011-12 was filed declaring total income INR 2541756 and the return was selected for scrutiny. AO made addition of LTCG of INR 5.88 Crore. AO noted sale of immovable property at INR 27,93,285, however, market value of the said property was INR 11,76,35,500. Assessee submitted that the stamp valuation authority has valued the land at current rates, however, the property was conveyed at the price agreed in 2003 and the consideration under sale agreement was approved by Bombay HC. ...