2025 (11) TMI 924

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....assed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2018-19. 2. Brief facts of the case is that the appellant is an individual filed his Return of Income for the Asst. Year 2018-19 on 29-09-2018 admitting total income of Rs. 3,69,940/- and a revised return on 12-10-2018 admitting total income of Rs. 3,65,380/-. The return was taken for scrutiny assessment for the reason that the purchase value of the immovable property along with the income disclosed is substantially less than the value as per the Stamp Duty Authority. Since the property purchased by the assessee was Rs. 20,00,000/- and the registration value by the Sub-Registrar, Bhavnagar was Rs. 1,21,41,000/- so....

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....s located very close to the Gulf of Khambhat and is severely affected by ingress of saline sea water. The land in question is frequently inundated during high tides, rendering it unsuitable for any industrial or commercial development. The ground conditions are extremely poor-the soil is saline, and the groundwater level is only 5 to 6 feet below ground. making it unfit for drinking or general usage. There is a complete lack of basic infrastructure facilities. including: No proper approach road to the site, No drainage system. No electricity connection, No access to potable water. Due to these harsh environmental and infrastructural conditions, the land is not viable for productive use, ....

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....e of the property and cost of brokerage paid. Thus Ld. Counsel submitted that the cost of Registration Charges and Land Tax paid charges included which are integral part of the purchase price and modified the addition made by the Ld. CIT(A) u/s. 56(2)(x) of the Act. 5. Per contra, the Ld. D.R. appearing for the Revenue supported the order passed by the lower authorities. 6. We have given our thoughtful consideration and perused the materials available on record including the valuation report submitted by Assistant Valuation Officer-II dated 07-07-2021. It is categorically mentioned in the report, that the cost incurred on Stamp Duty, Additional Stamp Duty, Registration Charges, Legal Charges and Other Charges/Taxes paid were not inclu....