Naresh Kumar Morya Vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Naresh Kumar Morya, filed his return of income for the assessment year 2017-18 declaring a total income of Rs. 16,49,128. The Assessing Officer received information that the assessee purchased immovable property in Delhi for Rs. 49 lakhs, whereas the stamp duty value was Rs. 52,32,960. The differential consideration of Rs. 3,32,960 was considered to have escaped assessment under Section 56(2)(vii)(b) of the Income-tax Act, 1961. The Assessing Officer issued a notice under Section 148 and made an addition of Rs. 3,32,960, which was upheld by the Commissioner of Income Tax (Appeals). The assessee argued that the differential consideration fell within the 10 percent tolerance limit prescribed under Section 56(2)(x) of the Act.…

Legal Issues

• 1. Whether the addition made under Section 56(2)(vii)(b) of the Act on account of differential consideration of immovable property was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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