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| The Tax Publishers2019 TaxPub(DT) 8098 (Del-Trib) INCOME TAX ACT, 1961
Section 56(2)(vii)(b)(ii)
When the margin between the value as given by the assessee and as determined by the departmental valuer was less than 10 percent, then the difference was liable to be ignored and the addition made by the Revenue under section 56(2)(vii)(b)(ii) on this count cannot be sustained and accordingly, the same was deleted.
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Income from other sources - Transfer of property for a consideration - Whether difference between sale consideration shown by assessee and FMV estimated by DVO need to be taxed when such difference was less than 10% -
AO made addition under section 56(2)(vii)(b)(ii) of the difference between sale consideration shown by the assessee and fair market value estimated by the DVO. However, assessee contended that as said difference was less than 10%, same was not liable to be taxed. Held: Since the difference between sale consideration shown by the assessee and fair market value estimated by the DVO was less than 10%, therefore the same was liable to be ignored. Hence, the addition made by AO under section 56(2)(vii)(b)(ii) of the difference between the value as shown by assessee and value as determined by the departmental valuer was not tenable and accordingly, deleted.
Followed:Rahul Constructions v. Dy. CIT ITA No. 1543/Pn/2007 : 2010 TaxPub(DT) 1310 (Pune-Trib)
REFERRED : Honest Group of Hotels (P) Ltd. v. CIT (2002) 177 CTR (J&K) 232 : 2002 TaxPub(DT) 0956 (J&K-HC)
FAVOUR : In assessee's favour
A.Y. : 2014-15
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