2025 (9) TMI 848 - AT - Income Tax

Matter remitted for fresh consideration after higher residential stamp duty slab wrongly applied; verification with stamp authority ordered

ITAT, DELHI remitted the matter to the file of the Ld. CIT(A) for fresh consideration, holding that the stamp authority erroneously applied a higher ... Addition u/s 56(2)(x)(b) - assessee had purchased agricultural land - as per the registered sale deed the stamp value authority had valued the said property by treating the same as residential and thus made the addition of the differential value - Claim of the assessee was that assessee had purchased agricultural land and the stamp duty was wrongly charged at the higher rate by treating the same as residential which is not correct - HELD THAT:- The higher stamp duty was charged where the land area is between 0.00 to 0.100 hectare however, assessee had purchased more land thus such rule was not applicable and the stamp authorities have mistakenly charged higher duty. These aspects were not considered, nor any verification was done form the stamp value authorities. Thus we deem it proper to restore the issue to the file of the Ld. CIT(A) with a direction to consider the submissions of the assessee and make necessary verification of the claim of the assessee and decide the issue as in accordance with law. Assessee is also directed to appear and cooperate in the appellate proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes. Assessee, a private company, purchased agricultural land for Rs.16,57,500 and paid stamp duty of Rs.3,28,000. Assessing Officer invoked section 56(2)(x)(b) and made an addition of Rs.30,14,500 by relying on the registered sale deed valuation treating the property as residential; an adhoc disallowance of Rs.5,00,000 was also made. CIT(A) partly allowed the appeal but upheld the addition under section 56(2)(x)(b). ITAT observed the assessee's contention that the stamp authority wrongly charged higher duty by treating agricultural land as residential (higher duty applicable where area is 0.00-0.100 hectare) and that no verification from stamp authorities was undertaken. The Tribunal held that, 'considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(A) with a direction to consider the submissions of the assessee and make necessary verification of the claim of the assessee and decide the issue as in accordance with law.' The assessee was directed to cooperate; the grounds were 'allowed for statistical purposes.'