RISING STAR INVESTMENT,MUMBAI vs. ITO WARD 26(1)(1), MUMBAI

ITA 186/MUM/2025Status: DisposedITAT Mumbai20 June 2025AY 2017-2018Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)8 pages
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What did the Tribunal hold?

The Tribunal held that the reopening notice was invalid due to violations of Sections 149 and 151 of the Act, as the approval for issuing the notice was not obtained from the specified authority. Consequently, the reopening proceedings and the assessment order were quashed. The Tribunal also deleted the addition made under Section 56(2)(viia) as the difference between the DVO's valuation and the consideration paid was less than 10%.

What were the facts?

The assessee's assessment for AY 2017-18 was reopened under Section 147. The Assessing Officer made an addition under Section 56(2)(viia) for the difference between the property's consideration and its stamp duty value. The assessee challenged the reopening proceedings on jurisdictional grounds and the addition on merits.

What were the issues?

Whether the reassessment proceedings were validly initiated due to proper approval under Section 151 and compliance with Section 149. Whether the addition under Section 56(2)(viia) was justified based on the property valuation.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 148A,Section 149,Section 151,Section 56(2)(viia)

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Income Tax Appellate Tribunal, “D” BENCH MUMBAI

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

Hearing: 22.04.2025Pronounced: 20.06.2025

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal filed by assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, vide order no. ITBA/NFAC/S/250/2024-25/1070242942(1), dated 11.11.2024 passed against the assessment order by Income Tax Officer, Ward 26(1)(1), Mumbai, u/s. 143(3) r.w.s. 147 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 30.05.2023 for Assessment Year 2017-18. 2. Grounds taken by the assessee are reproduced as under:

“1. Considering facts and circumstances of the case, and in law the learned Income Tax Officer erred in adding 1,10,39,000/- u/s 56(2)(viia) of the Income Tax Act, 1961. 2 Risin

The order continues below.

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