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Facts
The assessee's appeal for assessment year 2019-20 arises against an order from the CIT(A)/NFAC. The case involves proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961. The core dispute concerns an addition of Rs. 18,17,700/- made under section 56(2)(x) of the Act.
Held
The Tribunal acknowledged that valuation exercises can be subjective. While upholding the addition, the Tribunal granted a lumpsum relief of Rs. 5 lakhs to the assessee to meet the ends of justice, with the rider that it should not be treated as a precedent.
Key Issues
Whether the addition made under section 56(2)(x) of the Income-tax Act, 1961, is justified, and if so, to what extent relief can be granted.
Sections Cited
147, 144, 56(2)(x)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
DIN & Order No:ITBA/NFAC/S/250/2025-26/1082117003(1), dated 29.10.2025 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
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.
Deleted accordingly.
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/-.
Necessary computation shall follow as per law.
The assessee’s appeal is partly allowed.
Order pronounced in the open court on 22nd January, 2026.