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TMI Blog2024 (10) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty is guided by the Transfer of Property Act, 1882. Section 56 of the Transfer of Property Act deals with the rights of a buyer who purchases one or more properties from an owner who has mortgaged two or more properties to one person1. In the absence of a contract to the contrary, the buyer is entitled to have the mortgaged-debt satisfied out of the property or properties not sold to him, so far as the same will extend, but not so as to prejudice the rights of the mortgagee or persons claiming under him or of any other person who has for consideration acquired an interest in any of the properties. The right of transfer is vested with selling right and right to mortgage of the property. Factually, the revenue was not able to bring any s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax (Appeals) (hereinafter referred to as the CIT(A) ] erred in confirming the addition of Rs. 54,08,000/- under section 56(2)(x) of the Income tax Act, 1961 (hereinafter referred to as the Act ] being 50% of the stamp duty valuation in respect of the tenancy right. 1.2. On the facts and in the circumstances of the case and in law, the CIT(A) erred in holding that: (i) the transfer of the tenancy rights in the name of the Appellant is akin to the transfer of ownership rights in the said immoveable property and (ii) the provisions of section 56(2)(x) of the Act includes the transfer of tenancy rights in the said immoveable property and therefore, it is applicable in the case of the Appellant. 13 On the facts and in the circumstances of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aggrieved assessee filed an appeal before the Ld.CIT(A). The ld.CIT(A), considering the submission of the assessee dismissed the appeal. Being aggrieved on the appeal order, the assessee filed an appeal before us. 4. The ld.AR vehemently argued and filed written submission, which are kept in the record(APB). The Ld.AR invited our attention in the copies of agreement in APB pages 1 to 31 which is executed on 17/07/2017 with the landlord and the outgoing tenant. The Ld.AR stated that there is no transfer of the property and assessee has no right to sell the property. But it is only rental agreement for paying monthly rent of Rs. 700/- pm to the landlord. So the section 56(2)(x) is not applicable as there is no transfer of the property as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of law and not challenged it in appeal, then a subsequent decision following the earlier decision cannot be challenged. Further, it is not the Revenue's case before us that there are any distinguishing features either in facts or in law in the present appeal from that arising in the case of Atul G. Puranik (supra). 4.2 She further respectfully relied on the order of the order of Coordinate Bench-B of ITAT Mumbai, The Bombay Drug Distributors Vs ACIT [ITA no. 3619/M/2023, date of pronouncement 19/02/2024 where the Tribunal has taken the view in favour of the assessee. 5. The Ld.DR relied on the orders of the revenue authorities and argued that there is no specific tenure for the rent agreement, and it is nature of perpetual rent. But th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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