DEEPTI NANAK VASWANI,NAGPUR vs. INCOME TAX OFFICER, WARD5(2), NAGPUR

The assessee sole substantive grievance canvassed in the instant appeal seeks to reverse both the learned lower authorities action making sec.56(2)(vii)(b) addition of Rs.14,84,650/- representing difference between actual purchase price of Rs.2 crores as against stamp value of 2 ITA.No.230/NAG./2022 Rs.3,21,78,000/-; as reduced to Rs.2,29,69,300/- in the DVO’s report submitted in assessment proceedings. The assessee is co-owner to the extent of 50% of the relevant ‘capital asset’ purchased and therefore, both the learned lower authorities have restricted the above differential value of Rs.2,29,69,300/- to 50% only coming to Rs.14,84,650/- in issue.

Learned counsel vehemently argued that the DVO’s report submitted in the assessment proceedings nowhere considered all the relevant facts and distressing factors despite the fact that he had considerably reduced the fair market value [“FMV”] in question from stamp price of Rs.3,21,78,000/- to Rs.2,29,69,300/- (supra) only. Mr. Marathe could hardly dispute that such a valuation is indeed a subjective matter wherein all the corroborative facts play a major role in determining the fair market value of a ‘capital asset’. Faced with this situation, and in larger interest of justice, it is deemed appropriate to restrict the impugned addition of Rs.14,84,650/- to a lump sum amount of Rs.12 lakhs only keeping in mind the peculiar facts and circumstances involved herein with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.2,84,650/- in otherwords. Necessary computation shall follow as per law. Ordered accordingly.

This assessee’s appeal is partly allowed in above terms.