Case Law Details
Smt. Mohini Bharat Kumar Ludhani Vs National E-Assessment Centre (ITAT Mumbai)
In the case of Smt. Mohini Bharat Kumar Ludhani Vs National E-Assessment Centre, heard by the Income Tax Appellate Tribunal (ITAT) Mumbai, the appellant contested the order of the Commissioner of Income Tax (Appeals) regarding stamp duty valuation. This article explores the details of the case and the tribunal’s decision.
The appellant challenged the CIT(A)’s order, which upheld the addition of INR 56,00,022 under Section 56(2)(x) of the Income Tax Act for the Assessment Year 2018-19. The dispute arose from the variance between the consideration for the purchase of immovable property and the stamp duty valuation. The appellant argued that the stamp duty valuation should be based on the allotment letter date, not the date of registration of the agreement.
The ITAT examined the documents, including the allotment letter, endorsement letter, bank statements, and agreement, and concluded that the allotment letter constituted an agreement fixing the consideration for the transfer of the property. As per the first and second provisos to Section 56(2)(x) of the Act, the stamp duty valuation on the date of the allotment letter should be considered.
The tribunal highlighted that the appellant and the co-owner each held 50% ownership of the property, contrary to the Assessing Officer’s assessment. Therefore, the addition made by the Assessing Officer was set aside, directing a reassessment based on the stamp duty valuation on the allotment letter date.
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