Stamp Duty valuation of 2013 vis a vis 2016: Reopening quashed as income escaping assessment was below Rs. 50 Lakh & the statutory time limit of 3 years has expired.
The case pertains to the Assessment Year 2017-18.
The assessment was reopened under Section 148 of the Act, alleging that the stamp duty value of a purchased property exceeded the declared consideration, leading to unexplained investment.
The reopening was challenged as being beyond the statutory time limit (3 years for income below ₹50 lakh, as per Section 149(1)(b)).
The assessee contended the valuation date for the stamp duty value should be the booking date in 2013, not the registration date in 2016.
The reassessment was also disputed for procedural lapses and improper approval.
The reopening of the case was held invalid because the escaped income (₹ 35.13 lakh) was below ₹50 lakh, and the notice was issued after the 3-year limit.
The ITAT quashed the reassessment proceedings
The appeal filed by the assessee was allowed, and the reassessment proceedings were quashed.
The copy of the order is as under:
