Case Law Details
ITO Vs Mahavir Enterprises (ITAT Mumbai)
Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai recently passed an order in the case of ITO vs Mahavir Enterprises, shedding light on how fair market value should be determined for the purposes of stamp duty. This decision, passed on July 27, 2023, comes as an important precedent in property valuation and taxation.
Grounds Raised by the Revenue: In this case, the Revenue challenged the deletion of addition made by the Assessing Officer under section 56(2)(x) of the Income Tax Act, 1961. The main issues were:
1. Whether the deletion was justified as it was made without appreciating the valuation based on Section 56(2)(x) of the Act.
2. Whether the learned CIT(A) failed to consider that the assessee had not challenged the value of the property before the stamp duty authorities.
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