Tribunal overturns CIT(A) decision on section 56(2)(vii)(b)(ii) due to valuation discrepancies

The Tribunal set aside the CIT(A)'s decision upholding the addition under section 56(2)(vii)(b)(ii) due to discrepancies between stamp duty values and sale consideration. The Tribunal directed reassessment by the AO, emphasizing the consideration of revised guideline values for fair market value determination. The appeal was allowed for statistical purposes, remanding the case for further assessment.

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Issues:
Appeal against CIT(A)'s order confirming addition u/s.56(2)(vii)(b)(ii) on alleged difference between stamp duty value and sale consideration.

Analysis:
1. The appeal concerns the CIT(A)'s decision upholding the AO's addition of Rs.98.20 lakhs u/s.56(2)(vii)(b)(ii) due to variance between stamp duty value and sale consideration.
2. The assessee purchased three properties, and the stamp duty values exceeded the sale consideration, leading to the addition.
3. The CIT(A) partly accepted the assessee's contentions, increasing the purchase consideration to Rs.1.50 crores but retaining the addition of Rs.98.20 lakhs.
4. The Tribunal noted the total consideration paid by the assessee, discrepancies in valuation, and submissions regarding guideline value revisions.
5. The assessee argued for consideration of revised guideline values for property valuation, emphasizing the need for a fair market value assessment.
6. The Senior DR contended that guideline values at the time of registration should apply.
7. The Tribunal emphasized assessing true property value for section 56(2)(vii)(b)(ii) purposes, considering guideline value revisions for fair market value determination.
8. Consequently, the Tribunal set aside the matter for reassessment by the AO, directing consideration of revised guideline values for fair market value estimation.
9. The Tribunal allowed the appeal for statistical purposes, remanding the case to the AO for further assessment.

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