2025 (3) TMI 1119

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.....2018 declaring total income of Rs. 4,84,590/-. The case of the appellant was selected for scrutiny for the reason that the assessee invested in immovable property. Accordingly notices under section 143(2) and 142(1) were sent to the assessee. In response to the said notices, the assessee filed her reply on 12.06.2020 and 11.09.2020. The assessee also submitted the details of Sale Deed, Bank Statement etc. After considering the details filed by the assessee, the ld. Assessing Officer has added an amount of Rs. 4,06,816/- under section 56(2)(x) of the Act. The reason for the addition is that the difference between the actual purchase price as per sale deed and the valuation report is more than 5%. Aggrieved by the order of ld. Assessing Offi....

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....the difference of Rs. 4,06,816/- between the actual purchase price consideration of Rs. 38,44,884/- and the fair market value of the property fixed at Rs. 42,51,700/-, which was subject to the addition and the same was confirmed by the ld. CIT(Appeals). He further submitted that the Valuation Cell relied on the DM Circle rate for determining the fair market value by adopting rate of construction at Rs. 24,000/- per sq. mtr., whereas the cost of construction was required to be determined by the Valuation Cell being an expert and thus the observation of the ld. CIT(Appeals) that fair market value is based on estimation of actual ongoing rate of similar property in the same locality by the DVO runs counter to the method adopted by the DVO. He ....

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....ation determined by the Valuation Officer, who after examining all the merits and demerits, valued the property at Rs. 42,51,700/-. The difference is only Rs. 4,06,884/- (Rs.42,51,700/- minus Rs. 38,44,884/-). Therefore, the DVO has very liberally valued the property at Rs. 42,51,700/-, though the stamp duty valuation of property is Rs. 60,15,959/-. Therefore, the ld. D.R. pleaded that the orders passed by the revenue authorities are to be upheld. 7. I have perused the material available on record. It is an undisputed fact that the Registering Authorities valued the property at Rs. 60,15,959/- and the DVO valued the property at Rs. 42,06,884/- but the assessee purchased the property at Rs. 38,44,884/- (as per the consideration mentioned ....