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.

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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

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