2026 (2) TMI 495

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.... 143(3B) of the Income-tax Act (hereinafter referred to as the "Act"), dated 13.04.2021 for Assessment Year 2018-19. 2. Grounds taken by assessee are reproduced as under: 1. On facts and in law, the learned Commissioner of Income Tax (Appeals) (CIT (A)) erred in confirming the addition of Rs. 28,66,000 under section 56(2)(x) of the Income Tax Act, 1961, ignoring the bona fide nature of the transaction and the fact that the purchase was executed at fair market value based on a registered valuer's report. 2. The learned CIT (A) failed to appreciate that the appellant has carried out the purchase transaction for the purpose of business i.e., the property purchased is a stock-in-trade and hence, no tax is attracted in t....

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....les of natural justice and opportunity of being heard was not provided. 10. The above grounds of appeal are without prejudice to one another and the appellant craves leave to add, alter, amend, delete or modify any one of the above grounds of appeal. 3. Brief facts of the case are that assessee is a partnership firm engaged in a business of real estate development. Assessee filed its return of income reporting a total income at Rs. 3,67,300/-. Facts relevant to the issue under consideration are that assessee had executed a conveyance deed dated 27.03.2017 with M/s. Jayant Constructions for purchasing an immovable property, i.e., land, along with two structures thereon, for a consideration of Rs. 1,75,00,000/-. Subsequently, a su....

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....the Tribunal for the addition so sustained by the ld. CIT(A), i.e. Rs. 28,66,000/- 4. At the outset, the fact of valuation arrived at by ld. DVO is not in dispute which has resulted into reduction of the addition made by ld. Assessing Officer by applying provisions to section 56(2)(x). In this regard, it is important to take note of the proviso contained in clause(x) to section 56(2), whereby addition to the extent of 10% towards the actual consideration and the stamp duty value has been waived off for the purpose of taxation under the said provisions of section 56(x). 5. Reliance is placed on the following judicial precedents which dealt with similar issues: a. Maria Fernandes Cheryl ITA No. 4850/Mum/2019 A.Y 11-12 dated 15.....