ITAT Mumbai – Addition U/s 56(2)(x) Deleted; 10% Safe Harbour Applied on Property Purchase

Nakoda Developers Vs DCIT (ITAT Mumbai) The assessee, a real estate developer, purchased property for ₹3.25 cr whereas stamp duty value was higher. The AO invoked sec. 56(2)(x) and added ₹1.14 cr being difference between stamp value and purchase consideration. During appeal, based on DVO’s preliminary valuation, CIT(A) reduced addition to ₹28.66 lakh. Before ITAT, the Tribunal noted that statutory tolerance band of 10% applies while comparing actual consideration and valuation. Following judicial precedents treating this provision as beneficial and retrospective, ITAT held that where d...