Addition under s. 56(2)(vii)(b) for alleged understatement of...

Addition under s. 56(2)(vii)(b) for alleged understatement of consideration in purchase of an immovable property was examined where the property was jointly purchased and the AO adopted stamp-duty value as on the year of registration. Since the allotment letter was issued and consideration was paid through banking channels in an earlier year, the relevant stamp-duty valuation had to be taken as on the date of allotment. On that date, the ready-reckoner value was lower than the actual consideration paid, eliminating any taxable difference; consequently, the addition made on the assessee's 50% share was held unsustainable and deleted. - ITAT