ITAT invalidates Addition u/s 56(2)(vii) and deletes Deemed Gift due to Incorrect Valuation Date

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) invalidated an addition made under Section 56(2)(vii) of the Income Tax Act, 1961, and deleted the deemed gift classification due to an incorrect valuation date. The appellant, Partha Pratim Chakrabarty, filed his return of income on November 13, 2020, declaring a total income of Rs. 34,44,260. The tribunal found that the authorities failed to consider the appropriate date for determining the fair market value of the property, leading to an unjustified addition. This ruling highlights the importance of accurate valuation dates in tax assessments.