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TMI Blog2019 (4) TMI 1877X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of Jaipur Bench of Tribunal in ITO v. Trilok Chand Sain [ 2019 (2) TMI 277 - ITAT JAIPUR] wherein provisions of clause (b) of section 56(2)(vii) were considered. They have failed to take into cognizance the provisions of clause (c) of said section, which talks of property other than immovable property. Tribunal only to the definition of 'immovable property' and hold that it is not circumscribed or limited to any particular nature of property. Clause (c) very clearly talks of property other than immovable property and the word 'property' has further been defined under clause (d) of Explanation thereunder. In view of clear-cut provisions of the Act, we find no merit in the orders of authorities below in maki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der consideration had made investment in immovable property. The assessee had purchased immovable property worth ₹ 1,55,16,000/- on 21-1-2015 and of ₹ 33,25,000/- on 10-4-2014. The assessee was asked to furnish copies of purchase deeds and also explain the sources of investments in the said properties. The assessee furnished the same and explained that the properties were purchased in the joint names and the respective shares in the property had been shown in the return of income. The assessee also explained the sources of investments. With regard to property purchased on 21-1-2015, the Assessing Officer noted that the share of assessee was 50%. The assessee explained that sum of ₹ 1,55,16,000/- was the stamp duty value an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer, against which the assessee is in appeal before us. 6. The learned Authorized Representative for the assessee pointed out that section 56(2)(vii) of the Act talks of (a) any sum of money, without consideration; (b) talks of immovable property and (c) talks of property other than immovable property. He further referred to clause (d) of Explanation under the section, which defines property as following capital asset. He stressed that agricultural land was not capital asset and in any case, the assessee holds the said land as its stock in trade. He then referred to the Memorandum inserting the said Explanation. He further referred to the Balance Sheet placed at page 18 of Paper Book and under the heading 'Current Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,000/-; and sub-clause (ii) talks of consideration which is less than aggregate market value of the property by an amount exceeding ₹ 50,000/-. Explanation under the said section defines certain terms and clause (d) talks of property to mean capital assets of the assessee and then refers to the list of assets. 9. The case of assessee before us is that it has purchased agricultural asset which was held as 'Current Asset' by the assessee and when the same was sold in 2016, business income was declared on the said transaction. The assessee also stressed that agricultural land purchased by assessee was not capital asset, for which reliance was placed on the definition of 'capital asset' under section 2(14) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ni.e. property means the following capital assets of the assessee:- (i) immovable property being land or building or both; (ii) shares and securities; (iii) jewellery; (iv) archaeological collections; (v) drawings; (vi) paintings; (vii) sculptures; (viii) any work of art; [or] (ix) bullion. 10. In the totality of above definitions, we hold that agricultural land purchased by assessee is not governed by the provisions of section 56(2)(vii)(b) of the Act being not capital asset and also because of the fact that the assessee was holding it as stock in trade. Hence, it is outside the purview of said section and no addition has to be made in the hands of assessee. 11. Now, coming to the decision of Jaipur Bench o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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