New property purchase

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Mihir (Querist)
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24 November 2011 we have purcahsed a new property in mumbai. The maarket valuation for stamp duty is 80 appx. however the agreement value is 55 lakhs.....The ITO has questioned why the purchase price is low compared to market value? can the differnce or lower valuation be added back in purchasing parties income? section 50C will be applicable to seller of the propery ....how the purchaser is placed in such case?

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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24 November 2011 ADDITION CAN BE MADE ONLY IF HE HAS EVIDENCE THAT MONEY IN EXCESS OF DEED IS PAID. Check section 142-A, 69, 69A, 69B. He may refer for valuation u/s. 142A only of addition u/s. 69B is proposed. Relevant judgements are

ITO v Suman Kapoor ITA No 2193 (Del) 2009
Ashok Joni v ITO 102 TTJ
ITO v Anshu Jain 36 SOT 263 (JP)
Gaylord Builders V ITO (ITAT Del)
Sangam Cinema V CIT 328 ITR (SC)
CIT V Lukhnow educational society 10 taxmann.com
CIT V Aar Pee Apartments (P) Ltd 188 Taxmann 39 (del)
ITO v Vijeta educational society 118 ITD 382 (ITAT Kol)
Manjusha Estate (P) Ltd v ITO 314 ITR 263
Amar Kumari Surana V CIT (1996) 86
ITO V Namita Singh 15 Taxmann.com ITAT Delhi

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