The Appellate Tribunal considered a case involving an addition...

The Appellate Tribunal considered a case involving an addition u/s 56(2)(x)(B) due to the purchase of land property where the stamp value exceeded the consideration paid by more than Rs. 50,000. The assessee argued that the land was purchased as a beneficial owner in the previous year before the incorporation of the company. The Tribunal found that the MOU dated 30-06-2016 was acted upon, establishing that the land was purchased by the promoters on behalf of the company before its incorporation. The conveyance deed executed later was deemed a formality to fulfill the earlier promise/contract. The Tribunal held that the lower authority erred in invoking section 56(2)(x)(B) based on the stamp duty paid on the conveyance deed. The addition was directed to be deleted, and the appeal of the assessee was allowed.