TaxTMI 
TaxTMI 
2026 (2) TMI 1374
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....llant is in the business of the purchase of land and the property in question was stock in Trade, which was also reflected the balance sheet of the assessee and it was not a capital asset as decided by the AO and as such Section 56(2) (vii) does not apply 2. That the Appellant had produced various documents on record to show that the properties in question were agricultural lands situated at hills and as such the valuation of these properties was lesser value than the normal properties 3. That the Hon'ble ITAT in the case titled as Utility Supply Pvt. Ltd. v. DCIT (ITAT Mumbai) (ITA No. 3585/Mum/2024) dated 03.04.2025 has held that Shares held as 'stock in trade' by a company cannot be subject matter of additio....
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....ring the year at or above the market value, thereby negating any allegation of undervaluation or tax evasion. 9. That the show cause notice dated 24.12.2018 was issued merely two days prior to the passing of the assessment order, with 25.12.2018 being a public holiday, thereby reasonable opportunity of hearing was not given and as such the order passed by AO is bad in law. 2. At the threshold, we note a delay of 100 days in the filing of this appeal. The Assessee has moved an application for condonation, supported by an affidavit, citing compelling personal and legal exigencies. It is submitted that during the relevant period, the Assessee was embroiled in responding to summons issued by the Directorate of Enforcement (ED), Bang....
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....s argued that the definition of "property" in Explanation (d) to Section 56(2)(vii) is exhaustive, not inclusive. By applying the rule of literal interpretation, rural agricultural land and stock-in-trade are excluded from the levy; and lastly, Natural Justice: The Assessee contended that the Show Cause Notice dated 24.12.2018 provided an illusory window for response, as the assessment order was passed just two days later, with an intervening public holiday. 4. We have heard the rival submissions and perused the material on record. In the case, assessee had purchased two parcels of the land situated at Bhisengaon, Karjat. The Assessing Officer found that those properties were registered at a value lower than the stamp duty valuation and ....
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....ant case, the appellant has failed to adduce any evidence such as detailed books of account, purchase-sale transactions, or any other material demonstrating the business nature of the properties. The absence of any sale or development activity related to these lands during the relevant period undermines the claim of holding them as stock-in- trade. Further, the joint ownership with a business partner without clear delineation of trading activity does not satisfactorily establish that the appellant was engaged in a property trading business in respect of these lands. It is also noted that the appellant did not respond to the show cause notice issued by the AO and also to the hearing notices issued during the course of appellate proceeding. ....