KANCHAN RAWAL ,DELHI vs. ITO NFAC WARD - 36 (1) , NEW DELHI

Coming to the assessee’s/appellant’s first and foremost and substantive ground claiming chapter VI-A deduction of Rs.1,02,287/- made in the CIT(A)’s order at page-19, there is hardly any dispute that the Assessing Officer had duly accepted the same at page-8 of the assessment order dated 16.04.2024.

Next comes the second section 56(2)(x) addition of Rs.18,17,700/- made in assessee’s hands in both the learned lower authorities’ respective findings.

There is no dispute that the assessee had acquired the asset in question for Rs.20 lakhs having stamp duty value of Rs.1,33,91,500/-, whereas the DVO arrived at its fair market value amounting to Rs.38,17,700/- resulting in the impugned addition of Rs.18,17,700/- forming subject matter of adjudication before this Tribunal.

Both the parties could hardly dispute that such a valuation exercise is very much a subjective one wherein possibility of some distressing factors on both sides couldn’t be altogether ruled out. It is thus deemed appropriate that a lumpsum relief of Rs.5 lakhs to assessee would meet the ends of justice with a rider that the same shall not be treated as a precedent. The 2 | P a g e impugned addition is therefore restricted to Rs.17,17,700/-.

The assessee’s appeal is partly allowed.