Jalaluddin Mohammed Ali Khan vs. ITO Ward-26(1)(4)

Parties Involved

Facts Summary

The assessee, Jalaluddin Mohammed Ali Khan, had purchased three properties from M/s HDIL on 09.08.2010 but registered them on 11.05.2015. The Assessing Officer observed that the properties were registered at a value less than the stamp duty value, leading to a difference of Rs.85,88,466/-. The Assessing Officer treated this difference as deemed income under section 56(2)(vii) of the Income Tax Act, 1961. The Ld. CIT(A) upheld this addition on the ground that the assessee did not make any payment by way of cheque at the time of entering into the agreement. The assessee appealed against this order, arguing that part of the payment was made by cheque. The Tribunal found that the Ld. CIT(A) had not examined the cheque payments and restored the matter back to the file of the Ld. CIT(A) for verification.…

Legal Issues

• 1. Whether the difference between the stamp duty value and the purchase value of the properties should be treated as income from other sources under section 56(2)(vii) of the Act.

Judgment Outcome

Decided in favour of Assessee.

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