Income Tax Exemption on Differential Between Stamp Duty Valuation and Purchase Price Under Joint Development Agreement.

The Income Tax Appellate Tribunal (ITAT) overturned the Principal Commissioner's order, ruling that the addition under section 56(2)(x) concerning the difference between stamp duty valuation and purchase price in a Joint Development Agreement was unjustified. The ITAT noted that the Assessing Officer had thoroughly examined and accepted the assessee's arguments. It highlighted that taxable income under section 45(5A) arises only upon obtaining a completion certificate, which was not applicable in this case. The ITAT concluded that the Principal Commissioner's decision was based on unsubstantiated assumptions, ruling in favor of the assessee. .....

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