Lilo Satramdas Ballani Vs ITO (ITAT Mumbai)
Flat Booked in 2009 Saves Buyer from Huge 56(2)(vii)(b) Addition – Change of Flat Number Not Tax Evasion ITAT Steps In
Assessee purchased a flat for Rs.48,00,000 while stamp-duty valuation on registration dated 22/08/2016 stood at Rs.1,73,65,600. AO invoked u/s 56(2)(vii)(b) & added Rs.1,25,65,000, disregarding Assessee’s claim that the flat was originally booked in 2009 with payments of Rs.20,00,000 & Rs.28,00,000 duly evidenced in bank statements. Assessee was first allotted Flat No.1403 in 2009, later replaced with Flat No.1002 due to project issues, with identical area & no extra payment. Developer’s amended allotment letter & subsequent confirmation admitted that mention of Flat No.1001 was a typographical error. CIT(A) dismissed the appeal alleging multiple flat bookings & tax-avoidance intent. Tribunal held that the 2009 booking remained intact, payment was fully adjusted, area unchanged, & change in flat number was administrative. Tribunal applied Explanation to u/s 56(2)(vii)(b), directing that valuation must relate back to FY 2009-10 relevant to AY 2010-11. Additional evidence (developer letter & affidavit) was admitted, & matter restored to AO for limited verification, with directions to provide reasonable opportunity. Appeal allowed for statistical purpose.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
