Partha Pratim Chakrabarty vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Partha Pratim Chakrabarty, filed his return of income electronically on 13.11.2020, declaring a total income of Rs.34,44,260/-. The case was selected for scrutiny assessment, and a notice under section 143(2) was issued. The Assessing Officer found that the assessee had purchased a flat for Rs.81,71,000/-, while the Stamp Duty Valuation Authority determined the value at Rs.1,16,12,200/-. The Assessing Officer added the difference as a deemed gift under section 56(2)(vii) of the Income Tax Act. The assessee argued that the flat was purchased by his mother, Sabita Chakrabarty, who paid Rs.71,00,000/- and deducted TDS at Rs.71,000/-. The balance amount was paid by the assessee through account payee cheque, with TDS of Rs.10,710/- deducted. The Assessing Officer did not consider these facts and made the addition, referring to the DVO for determining the fair market value.…

Legal Issues

• 1. Whether the Assessing Officer erred in confirming the addition made under section 56(2)(vii) of the Income Tax Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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