The case pertains to the applicability of Section 56(2)(x) of the Income Tax Act on the conversion of...

The case pertains to the applicability of Section 56(2)(x) of the Income Tax Act on the conversion of tenancy rights into ownership rights by a protected tenant. The key points are: The Assessing Officer invoked Section 56(2)(x) on the conversion, treating it as a 'transfer' u/s 2(47). The CIT(A) upheld this action, considering the conversion as a 'transfer' covered u/s 56(2)(x)(b)(B). However, the ITAT distinguished between transfer of ownership rights and transfer of ownership by a protected tenant. It held that the assessee, being a protected tenant since 1992, merely acquired ownership rights of the flat earlier occupied as a tenant, and did not acquire any immovable property. The ITAT ruled that Section 56(2)(x)(b) is not applicable in..... .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X