Development rights are not immovable property purchases for stamp duty value taxation under section 56(2)(x).

Section 56(2)(x) of the Income-tax Act does not apply where the transaction is an acquisition of development rights in immovable property rather than a purchase of the property itself. The arrangement here was treated as a licence to develop and receive a share of constructed area, and it did not confer possession amounting to part performance under section 53A of the Transfer of Property Act. On that basis, the difference between stamp duty value and stated consideration could not be brought to tax as an addition under section 56(2)(x).

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Issues: Whether the difference between the stamp duty value and the stated consideration for acquisition of development rights in immovable property could be brought to tax under section 56(2)(x) of the Income-tax Act, 1961.

Analysis: The assessee had not purchased any immovable property in the ordinary sense but had acquired development rights under the relevant conveyance deed and memorandum of understanding. On the facts, the arrangement gave a licence to develop the property and allot a portion of the constructed area, which did not amount to possession in the sense contemplated by section 53A of the Transfer of Property Act, 1882. The provisions of section 56(2)(x) apply to a buyer of immovable property, whereas the present transaction was one for development rights. The reasoning also drew support from the principles governing part performance and de facto transfer, as discussed in the relied-upon precedent.

Conclusion: Section 56(2)(x) was not attracted to the assessee's acquisition of development rights, and the addition based on stamp duty value could not be sustained.

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