Tushar Uday Talwalkar Vs ITO (ITAT Mumbai)
Summary: The appeal was filed by Tushar Uday Talwalkar against the order of the NFAC, Delhi passed under Section 250 of the Income-tax Act, 1961 for AY 2017-18. The impugned appellate order arose from reassessment proceedings under Section 147 read with Section 144B, in which an addition of Rs.33,41,818/- had been made under Section 56(2)(vii)(b).
The assessee was an individual engaged in the retail business of stationery. He had not originally filed a return because his income was below the taxable threshold. Reassessment proceedings were subsequently initiated after information was received concerning an immovable-property transaction during FY 2016-17 in which the consideration reflected was lower than the stamp duty value. In response to notice under Section 148 dated 31.07.2022, the assessee filed a return declaring total income of Rs.74,030/-.
The transaction arose from redevelopment of existing premises at Goregaon East, Mumbai, where the assessee was a sub-tenant/occupant along with his father. Under an Agreement for Providing Permanent Alternate Accommodation (PAA) dated 06.06.2016, the assessee and his father were entitled to receive 550 sq. ft. of PAA on ownership basis in consideration of relinquishing their existing tenancy/sub-tenancy rights. The assessee’s individual entitlement was 200 sq. ft. The PAA had not been received or put into his possession during the relevant year.
