ITAT Mumbai Allows Retrospective 5% Tolerance Relief Under Section 56(2)(x)

Lakhdhir Virji Gala Vs ITO (ITAT Mumbai) The core dispute involved the addition of Rs. 5,85,004/- to the assessee’s income as income from other sources under Section 56(2)(x) of the Income Tax Act, 1961. The assessee, an individual, had filed a return declaring a total income of Rs. 6,57,930/-. The case was selected for scrutiny. The Assessing Officer (AO) observed that the assessee, along with Smt. Pushpa Kumari Lakhdhir Gala, purchased a property on October 10, 2017, for a consideration of Rs. 2,71,01,140/-. The stamp duty value of this property was determined to be Rs. 2,82,71,148/-. ...