The Appellate Tribunal held that the case was selected for ...

ITAT: No reason for extra tax on property sale! Fair Market Value versus actual price. AO must follow limited scrutiny rules!

Case Laws Income Tax

July 3, 2024

The Appellate Tribunal held that the case was selected for "limited scrutiny" based on large cash deposits and property transfers. The addition u/s 56(2)(vii)(b) for the difference between Fair Market Value and actual consideration was not justified. The addition did not relate to the basis for limited scrutiny. The Tribunal cited M/s. Suraj Diamond Dealers Pvt. Ltd., stating that the AO can only go beyond limited scrutiny reasons with approval. The AO's addition was deemed erroneous as it was not part of the limited scrutiny reasons, thus the appeal grounds were allowed.

View Source

← Previous Next →

The Appellate Tribunal held that the case was selected for ...

ITAT: No reason for extra tax on property sale! Fair Market Value versus actual price. AO must follow limited scrutiny rules!

Case Laws Income Tax

July 3, 2024

You may also like:

Addition u/s 56 (2)(viib) - Valuation of shares - Faire Market Value (FMV) - the assessee has himself filed a valuation certificate before AO and accepted fair market...

Addition u/s 56(2)(viia) - purchase of shares at price more than its fair market value - The tribunal extensively reviewed the submissions and evidence presented,...

Computation of LTCG - Based on a reading of Section 50CA of the Act, it is clear that where the actual sale consideration on transfer of unlisted equity shares is less...

AO rejected registered valuer's report for cost of acquisition and relied on section 55A. ITAT held that if AO was unsatisfied with registered valuer's report, he should...

Reopening of assessment u/s 147 for assessing Long Term Capital Gain on sale of land in Financial Year 2005-06. Assessing Officer (AO) adopted full value consideration...

The ITAT Chennai ruled on deduction u/s 80IA, focusing on determining the market value of power supplied by the assessee to its industrial units. The AO argued for using...

This case deals with the levy of deficit stamp duty and penalty in a court-conducted auction sale. The key points are: In a court-supervised auction sale, the stamp...

Capital gain computation - Fair Market Value as on 01.04.1981 u/s 55(2)(b)(i) - the fair market value of the impugned immovable property should be adopted at Rs....

Valuation - the fair market value of the property is dependent on several factors which influence valuation and there is no scientific or straight jacket method to value...

Amendment of section 281B. - Attachment of property - Assessing Officer shall revoke attachment of property made under sub-section (1) in a case where the assessee...

Determining the short term capital gains - adopting different value from market value of the property - sale of the property lower than the value adopted by the Stamp...

Recalculation of LTCG and sale of shares - AO does not have power under the Income Tax Act to substitute fair market value for full value of consideration - AT

The Income Tax Appellate Tribunal (ITAT) examined the addition made u/s 56(2)(viib) for the difference between the market value and consideration received for shares...

Addition applying the provisions of section 50C - Once the assessee has raised the objection against the adoption of deemed full value consideration in terms of section...

Shares granted under Employees Stock Purchase Scheme (ESPS) had a lock-in period and could not be traded in the open market. The Fair Market Value (FMV) could not exceed...

Quick Updates: