Section 56(2)(x) relief for property transfer between relatives, with addition deleted

A transfer of property between the assessee and a relative was treated as outside the scope of section 56(2)(x) because the provision targets specified transactions that do not fall within recognised exclusions. Relying on the admitted factual position and a coordinate bench decision on an identical issue, the Tribunal held that the addition could not be sustained. The addition under section 56(2)(x) was deleted, and the matter was decided in favour of the assessee.

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Issues: Whether the addition made under section 56(2)(x) of the Income-tax Act, 1961 was sustainable where the property transaction was between the assessee and a relative.

Analysis: The transaction was stated to have been carried out with a relative of the assessee. On that basis, the Tribunal treated such transfer as outside the rigour of section 56(2)(x), which targets specified transfers that do not fall within the recognised exclusion. In view of the admitted factual position and the coordinate bench decision on an identical issue, the addition could not be sustained.

Conclusion: The addition under section 56(2)(x) was deleted and the issue was decided in favour of the assessee.

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