The ITAT, an Appellate Tribunal, considered an addition u/s 69 ...

Property deal: Agreed vs actual value. Stamp duty paid explained. Legal provisions not violated. Assessee's appeal allowed.

Case Laws     Income Tax

June 21, 2024

The ITAT, an Appellate Tribunal, considered an addition u/s 69 concerning a difference in agreed and actual deal value, attributed to unexplained source of stamp duty payment during property registration. The Tribunal noted the relevant legal provisions (u/s 50C, 43CA, 56(2)(vii)) applicable to such property transactions. It emphasized that the AO must apply these provisions correctly and establish any violation by the taxpayer. In this case, as the taxpayer was not required to maintain accounts u/s 44AA and there was no concrete evidence against her, the provisions u/s 68 to 69B were wrongly invoked by the AO, later changed to u/s 69A by CIT (A). The Tribunal found the taxpayer's explanation reasonable and directed deletion of the addition, as the lower authorities had misapplied the law. The appeal of the taxpayer was allowed.

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