SHRI HUSAIN ASGARALI BHANPURAWALA ,MUMBAI vs. INCOME TAX OFFICER , MUMBAI

Facts

The appellant purchased an office property for Rs. 23,50,000, while the stamp duty value was Rs. 57,51,000. The Assessing Officer (AO) treated the difference of Rs. 34,01,000 as income from other sources under Section 56(2)(x) of the Income Tax Act.

Held

The Tribunal held that the appellant was not given a reasonable opportunity of being heard and therefore, it is proper to remand the matter back to the CIT(A) to provide the appellant with a reasonable opportunity to explain the difference between the stamp value and the sale consideration.

Key Issues

Whether the AO was correct in re-opening the assessment and making an addition under section 56(2)(x) without providing a proper opportunity to the assessee to present evidence and whether the CIT(A) erred in dismissing the appeal without considering the evidence.