Neelam Singh Vs ITO (ITAT Agra)
Land Under Water, Addition Above Water—ITAT Orders a Fresh Look!
The background: A property purchase triggers reopening
The dispute arose from the purchase of immovable property situated at Abdulnavipur Khadar, Tehsil Mahavan, District Mathura, on 18 May 2018.
The Department initially received information describing the transaction as a purchase for ₹17,72,000. Based on this information, the assessment for AY 2019-20 was reopened through notice under section 148 dated 24 March 2023.
During assessment, however, the Assessing Officer obtained the purchase agreement and found that the actual consideration was ₹8 lakh, with stamp duty of ₹1,14,100. The figure of ₹17,72,000 represented the property’s stamp duty valuation, rather than the actual purchase consideration.
This distinction became important because the Assessing Officer proceeded to make two separate additions concerning the same acquisition.
Two additions: Source of investment and stamp-value difference
The Assessing Officer recorded that the assessee had been given several opportunities to furnish her explanation but had failed to respond.
In the absence of a reply, he added ₹9,14,100 under section 69, comprising the purchase consideration of ₹8 lakh and stamp duty of ₹1,14,100, treating the investment as unexplained.
He separately added ₹9,72,000 under section 56(2)(x)(b)(B), representing the difference between the stamp duty value of ₹17,72,000 and the actual consideration of ₹8 lakh.
