Tushar Ramnath Shetty v/s The Income Tax Officer

Parties Involved

Facts Summary

The assessee, Tushar Ramnath Shetty, filed his return of income on 20/07/2018 declaring a total income of Rs.5,12,340. The return was selected for scrutiny, and statutory notices were issued under sections 143(2) and 142(1) of the Income Tax Act, 1961. During the assessment proceedings, it was observed that Shetty purchased a property on 19/06/2017 at a purchase consideration of Rs.90,00,000, which was less than the stamp duty value of Rs.95,58,000. The excess of stamp value over the purchase consideration was Rs. 5,58,000, which exceeded the higher of 5% of the purchase consideration and Rs. 50,000. Accordingly, the Assessing Officer made an addition of Rs. 5,58,000 under section 56(2)(x) of the Act. Shetty appealed against this addition, arguing that the difference in value was due to an error in the area stated by his advocate in the agreement. The Commissioner of Income Tax (Appeals) dismissed Shetty's appeal, confirming the addition made by the Assessing Officer.…

Legal Issues

• 1. Whether the learned Commissioner of Income Tax (Appeals) erred in confirming the addition made by the Assessing Officer under section 56(2)(x) of the Act.
• 2. Whether the amendment increasing the tolerance band from 5% to 10% under section 56(2)(x) of the Act is applicable retrospectively.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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