Section 56(2)(vii)(b) Addition Quashed; AO Directed to Use Valuation from Agreement Year

Sudha Agrawal Vs ITO (ITAT Mumbai)

Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has set aside an addition of Rs. 97,72,517/- made under Section 56(2)(vii)(b) of the Income-tax Act, 1961, in the case of Sudha Agrawal versus Income Tax Officer (ITO) for the Assessment Year 2017-18. The Tribunal ruled that the property’s stamp duty valuation should be considered as of the date of the agreement and allotment, given that payments were made through banking channels, rather than the date of registration.

The case involved an appeal filed by

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