2025 (12) TMI 348

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....5. The impugned order was emanated from the order of the Learned Income-tax Officer, Ward 16(2)(4), Mumbai (in short, 'Ld.AO') passed under section 143(3) of the Act, date of order 22/12/2019. 2. The brief facts of the case are that the assessee e-filed the return of income declaring a total income of Rs. 9,32,260/-. Subsequently, the case was selected for limited scrutiny under CASS, and the assessment was completed under section 143(3) of the Act. During the assessment proceedings, the Ld. AO observed that the assessee had purchased a property for Rs. 48,00,000/-, whereas the stamp duty valuation of the said property, as per the registered agreement dated 22/08/2016, was Rs. 1,73,65,600/-. On perusal of the agreement, the Ld. AO noted ....

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....sessee preferred an appeal before the Ld. CIT(A). After considering the documents furnished, the Ld. CIT(A) dismissed the appeal, observing that the assessee had booked multiple flats with the intention of evading tax, and therefore the change in flat number could not be accepted as a genuine transaction. The Ld. CIT(A) further concluded that since Flat No. 1002 was allotted only on 01/04/2016, the valuation of the earlier cancelled flat could not be adopted. Accordingly, the Ld. CIT(A) upheld the order of the Ld. AO. Being aggrieved, the assessee has now filed an appeal before us. 3. The Ld.AR argued and filed a paper book containing pages 1 to 62, which is kept on record. The Ld.AR filed an additional evidence related to confirmation f....

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....iation in the area of the flat. Considering the totality of facts, we hold that the assessee is squarely protected by the Explanation to section 56(2)(vii)(b) of the Act. Accordingly, the valuation is required to be adopted with reference to the financial year 2009-10 relevant to A.Y. 2010-11. In our considered view, the assessee is entitled to the benefit of the said Explanation. The assessee has furnished additional evidence in the form of an affidavit and the developer's letter dated 20/04/2020. We admit the additional evidence and restore the matter to the file of the Ld. Assessing Officer for the limited purpose of verifying the said letter, the agreement, and the assessee's contention that the stamp duty valuation of Flat No. 1002 sho....