Addition u/s 56(2)(vii)(b)

[Haresh Raithatha]

Dear sir

One of my client had purchased Agricultural land for ₹ 32 lacs jointly with 3 co-owners in F Y 14-15. He is having other income of ₹ 2.50 lacs (Agricultural income ₹ 7.25 lacs) during the F.Y. 2014-15. Value u/s 50 (c) is ₹ 90 lacs. The case is selected under scrutiny and AO want to Add ₹ 14.50 lacs (1\4th share) in the Assessment u/s 56 (2)(vii)(b).

Please adivse.

AI Summary

Assessing Officer Plans to Add 14.50 Lakhs to Income Under Section 56(2)(vii)(b) Due to Land Valuation A client purchased agricultural land for 32 lakhs jointly with three co-owners in the financial year 2014-15. The client also had other income of 2.50 lakhs and agricultural income of 7.25 lakhs during the same period. The property's value under section 50(c) is assessed at 90 lakhs. The case is under scrutiny, and the Assessing Officer intends to add 14.50 lakhs (representing the client's one-fourth share) to the client's income under section 56(2)(vii)(b). A query was raised for advice, and a respondent asked for the Assessing Officer's reasoning behind this addition.