ITAT Mumbai Deletes Addition on Property Deal, Says 10% FMV Tolerance Applies to Sec 56(2)(vii)

Ashutosh Sinha Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai bench, in the case of Ashutosh Sinha vs. ITO, addressed an appeal against an assessment order that had added a significant sum to the assessee’s income under Section 56(2)(vii)(b)(ii) of the Income Tax Act, 1961. The core of the dispute revolved around the taxability of the difference between the actual consideration paid for a property and its stamp duty value, and whether a tax addition was justified when the difference fell within a reasonable margin. Background of the Case The assessee, Ashutosh Sinha, h...