No Section 56(2)(x) Additions if New Flat Was Received by Assessee in Lieu of Old Flat Surrendered by Him | ITAT
- News|Blog|Income Tax|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 3 April, 2025
Latest from Taxmann
Case Details: Anil Dattaram Pitale vs. Income-tax Officer - [2025] 173 taxmann.com 51 (Mumbai-Trib.)
Judiciary and Counsel Details
- Sandeep Gosain, Judicial Member & B.R. Baskaran, Accountant Member
-
Dr. K. Shivaram & Shashi Bekal for the Appellant.
-
Kiran Unavekar, Sr.DR for the Respondent.
Facts of the Case
The assessee purchased a flat in the financial year 1997-98 in a Co-operative Housing Society. The society underwent redevelopment as per the agreement entered with the developer. As per the terms and conditions of the agreement, the assessee got a new flat in lieu of the old flat surrendered by him.
The stamp duty value of new flat was Rs. 25,17,700. The indexed cost of the old flat was Rs. 5,43,040. The AO assessed the difference between the above-said values amounting to Rs. 19,74,660 as income of the assessee under section 56(2)(x).
The CIT(A) upheld the additions made by AO and the matter reached to the Mumbai Tribunal.
ITAT Held
The Tribunal held that the assessee got a new flat in the redeveloped property in lieu of the old flat. Hence, it is a case of extinguishment of the old flat and in lieu thereof, the assessee has got a new flat as per the agreement entered with the developer for the redevelopment of the society.
Thus, it is not a case of receipt of immovable property for inadequate consideration that would fall within the purview of the provisions of section 56(2)(x). Accordingly, the provisions of section 56(2)(x) will not apply to the facts of the present case.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
