The Income Tax Appellate Tribunal (ITAT), Mumbai bench, directed readjudication in respect of stamp duty valuation upon the sale of inherited property to the brother. The assessee, Ranjita Rangnath Mhatre, is an individual and a housewife dependent on her son. During the year under consideration, the assessee relinquished her 14.28% share in hereditary rights in a land inherited from her father in favor of her brother Shri Anil Krishna Kawale, receiving Rs.8,00,000.
It was observed that the assessee did not file a return. Consequently, the AO issued a notice under section 148 of the Income Tax Act based on information from the ITB portal. In response, the assessee filed a return declaring Rs.8,00,000 as agricultural income and Rs.9,143 as interest income. After verifying documents and land transactions, the AO opined that the asset’s value transferred is Rs.1,92,87,500 as per stamp duty valuation, invoking section 50C. Additionally, 54% of the land not used for agricultural purposes falls under the definition of a capital asset.
The assessing officer computed capital gains, and the ex parte order was appealed before the CIT(A), who dismissed it. The assessee then filed an appeal before the tribunal. During the proceedings, the representative argued for a reference to the District Valuation Officer (DVO) and contested the AO’s adoption of stamp duty value for section 50C. The tribunal observed that the assessing officer did not refer to the DVO and remitted the issue back for reconsideration.
After reviewing facts and records, the two-member bench directed readjudication of stamp duty valuation, ultimately allowing the appeal of the assessee.
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