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Facts
The assessee purchased a property for Rs. 40,800/- while its stamp duty valuation was Rs. 27.31 Lacs. The Assessing Officer made an addition of Rs. 26.90 Lacs under section 56(2)(x)(b) of the Act. The Commissioner of Income Tax (Appeals) confirmed this addition.
Held
The Tribunal found that the assessee disputed the stamp duty valuation. Therefore, it was imperative to refer the matter to the Department of Valuation Officer (DVO) for a fresh valuation. The assessment was restored back to the Assessing Officer for adjudication based on the DVO's valuation.
Key Issues
Whether the addition made by the AO based on the difference between the purchase price and the stamp duty valuation is sustainable without referring the matter to the DVO for valuation.
Sections Cited
56(2)(x)(b), 147, 144B
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Income Tax Appellate Tribunal, “SMC” BENCH, AGRA
Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा�रणवष� / Assessment Year:2019-20) Ramshree Income-tax Officer, बनाम/ 224, Purbiya Tola, Ward 2(2)(5), Etawah. Vs. Etawah – 206001 (UP). �थायीलेखासं./जीआइआरसं./PAN/GIR No. DRVPR-5915-L (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : None � थ�कीओरसे/Respondent by : Sh. Shailender Shrivastava – Ld. DR सुनवाईकीतारीख/Date of Hearing : 21-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of an order passed by learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 18-10-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144B of the Act on 11-03-2024. In the assessment order, Ld. AO made addition of Rs.26.90 Lacs u/s 56(2)(x)(b) on the allegation that the assessee purchased a property for Rs.40,800/- as against its stamp duty valuation of Rs.27.31 Lacs. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us. The Ld. Sr. DR pleaded for dismissal of the appeal.
We find that the impugned addition has been made on the ground that there was differential in the purchase price of the property and its stamp duty valuation. The assessee is disputing the valuation. Therefore, it would be imperative to make a reference to DVO. For the said purpose, the assessment is restored back to the file of Ld. AO for fresh adjudication in terms of DVO valuation. The assessee is directed to substantiate its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.