Dilip Dhirajlal Shah Vs ITO (ITAT Mumbai)
Joint Allottee, Old Payments, New Valuation -Additional Evidence Changes the Landscape: ITAT Remands s.56(2)(vii)(b) Addition on Property Purchase for Fresh Examination
Tribunal examined Assessee’s challenge to addition of ₹25,39,000/- made u/s 56(2)(vii)(b) on the ground that the stamp duty value of the office premises purchased in project Man Excelleza exceeded the declared consideration. AO invoked reassessment u/s 147 stating that property was purchased for ₹1,41,74,000/- against SDV of ₹1,67,13,000/-. AO rejected Assessee’s explanation that the property was originally booked in 2009 jointly with his son, & that Assessee’s name was formally added as co-allottee in 2011. CIT(A) upheld the addition on the basis that registration took place only on 06.10.2016 & Assessee did not furnish a valuation report to show lower market value on the agreement date.
Before Tribunal, Assessee produced a paper book containing allotment letter of 15.07.2009, subsequent letter of 16.03.2011 adding Assessee as joint allottee, multiple bank statements showing substantial payments made by Assessee during FYs 2012-13 & 2013-14, builder’s correspondence regarding possession delays, & crucially, fresh fair market valuation reports from a registered valuer. These additional evidences directly addressed the core issue whether section 56(2)(vii)(b) should be applied with reference to agreement-date value rather than registration-date value.
