2026 (1) TMI 1549

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....his case was completed u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961 ("the Act") vide order dt. 13-04-2021, wherein the AO has brought to tax an amount of Rs. 3,17,30,016/- being the difference of stamp duty value over the purchase consideration, invoking the provisions of section 56(2)(x) of the Act. The assessee thereafter carried the matter in appeal before the Ld.CIT(A), who has since confirmed the order and findings of the AO and against the said order, the assessee is in appeal before us. 3. One of the grounds of appeal taken by the assessee relates to erroneous application of section 56(2)(x) of the Act by the Assessing officer without reference to DVO in spite of objection raised by the assessee and sustenance ....

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....tle of the property. Also the property is affected by road setback. So one of the co-owner on account of rising legal costs and uncertainty about the peaceful possession of the property decided to sell his stake in the land. To avoid any further legal complications, I had to unwillingly purchase the remaining stake in the property. The detailed history of property is stated in purchase deed. Hence under these circumstances when the land with temporary structures is not having title defect and the same was purchased at a lesser price, adoption of stamp valuation as sales consideration by applying the provisions of Section 56(2)(x) is not justified. Therefore we would like to humbly request you to not invoke provisions of Section 56(2)(x) of ....

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....as not been referred to DVO, the matter may be restored to the file of the AO with a direction to make an appropriate reference to the DVO, after allowing opportunity to the assessee. 6. The Ld. DR has been heard, who has not raised any specific objection where the matter is remitted to the file of the AO for reference to the DVO for determination of fair market value. 7. We have heard the rival contentions and perused the material available on record. We find that the assessee has been consistent in his position that there is a title defect in the property so acquired by him and there are various other factors in terms of encroachment etc., in relation to the property so acquired and, therefore, the stamp duty value does not reflect ....