ITAT Allows 10% Safe Harbour on DVO Valuation Due to Estimation Nature of Property Values

Shreyas Naynesh Modi Vs ITO (ITAT Mumbai) The Special Bench of the ITAT Mumbai was constituted to decide whether the 10% safe harbour limit under Section 56(2)(x) of the Income Tax Act applies not only to the stamp duty value (SDV) but also to the fair market value (FMV) determined by the Departmental Valuation Officer (DVO). The assessee, an individual, filed a return declaring income of ₹8,06,960 for AY 2018–19. During scrutiny, it was found that the assessee purchased a flat for ₹2.65 crore, while the stamp duty valuation was ₹3.79 crore. A valuation report obtained by the assessee ...