2026 (8) TMI 1470

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ead with section 144B of the Act for the assessment year 2020-21. 2. The assessee has raised the following grounds of appeal: "1. Determining the total taxable income at Rs. 97,60,058 and determining a sum of Rs. 60,38,032 payable by the appellant. 2. Initiating reassessment proceedings under section 147 in the absence of any information suggesting that income chargeable to tax had escaped assessment. 3. Passing the order under section 148A(d) without application of mind and by reference to provisions not operative in law. 4. Initiating reassessment proceedings without furnishing a copy of the approval under section 151 of the Act. 5. Holding section 56(2)(x) applicable to the facts of the cas....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....etters from the Society from 2007 to 2012. 4. The disputes were ultimately settled and a deed of conveyance dated 25.11.2019 was executed by the owners, the confirming parties, the builder and the assessee Society for a negotiated consideration of Rs. 11,00,000/-. The stamp valuation authority adopted a value of Rs. 1,07,67,200/-. Treating the difference of Rs. 96,67,200/- as income under section 56(2)(vii)(b), the Assessing Officer made the impugned addition. He also disallowed deduction of Rs. 34,348/- claimed under section 80P and determined the total income at Rs. 97,60,058/-. 5. The learned CIT(A) agreed that section 56(2)(vii)(b), as quoted by the Assessing Officer, was not the applicable provision, but held that the reference t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ntrol. Reliance was also placed upon Administrator of Estate of Late E.F. Dinshaw v. ITO (ITA No.3019/Mum/2008), Cinestaan Entertainment (P.) Ltd. v. ITO [2019] 106 taxmann.com 300 (Delhi - Trib.), Utility Supply (P.) Ltd. v. DCIT [2025] 174 taxmann.com 250 (Mumbai - Trib.) and Vaani Estates (P.) Ltd. v. ITO [2018] 98 taxmann.com 92 (Chennai - Trib.). 8. The learned Departmental Representative, on the other hand, relied upon the order of the learned CIT(A). It was submitted that the deed described the assessee Society as purchaser, consideration was paid by it and the property stood conveyed to it on 25.11.2019. Therefore, the difference between the stamp duty value and the consideration was rightly brought to tax under section 56(2)(x),....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....possessory and beneficial enjoyment of the constructed building had already passed decades earlier. What remained outstanding was the formal vesting and perfection of title. The payment of Rs. 11,00,000/- was made to settle intervening disputes and procure performance of that outstanding obligation. There is no finding by either authority that the Society paid any unaccounted consideration, that the transaction was colourable, or that it received in 2019 a property commercially distinct from the property already occupied and enjoyed by its members. 12. In M. Siva Parvathi, the Tribunal, while dealing with a delayed registration caused by disputes and circumstances beyond the assessee's control, observed in paragraph 8.5, in substance, th....