Taxing provision limited to specified assessees: addition on flat valuation difference deleted where company was outside the section's scope.

Section 56(2)(vii)(b)(i) applies only to an individual or Hindu undivided family, not to a company. As the assessee was a company, the basic jurisdictional condition for invoking the provision was absent, so the addition based on the difference between documented value and market value of flats could not be sustained and was deleted.

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Issues: Whether Section 56(2)(vii)(b)(i) of the Income-tax Act, 1961 applied to a company so as to justify the addition made on account of difference between documented value and market value of flats sold.

Analysis: The assessee was admittedly a company. The provision invoked by the Assessing Officer applies to an individual or a Hindu undivided family and not to a company. Since the basic jurisdictional condition for applying the provision was absent, the addition could not be sustained.

Conclusion: The provision was inapplicable to the assessee and the addition was deleted.

Ratio Decidendi: A taxing provision can be applied only to the class of assessees expressly covered by it, and where the assessee does not fall within that class, the addition made under that provision cannot survive.

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