The assessee, a tenant paying monthly rent of Rs. 700, acquired ...

Tenant's mere right to stay doesn't constitute property transfer u/s 56(2)(x).

Case Laws Income Tax

October 3, 2024

The assessee, a tenant paying monthly rent of Rs. 700, acquired only the right to stay or modify the property, without any ownership rights, thus not attracting provisions of Section 56(2)(x) of the Act. The transfer of property is governed by the Transfer of Property Act, 1882, and the revenue failed to provide evidence of such transfer as per the Act. The ITAT relied on decisions pertaining to Section 50C and the orders in Greenfield Hotels & Estates (P.) Ltd. and The Bombay Drug Distributors, concluding that the addition based on tenancy rights was unjustified. Consequently, the ITAT set aside the impugned appeal order and deleted the addition, allowing the assessee's appeal.

View Source

← Previous Next →

The assessee, a tenant paying monthly rent of Rs. 700, acquired ...

Tenant's mere right to stay doesn't constitute property transfer u/s 56(2)(x).

Case Laws Income Tax

October 3, 2024

You may also like:

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...

Capital gain in respect of sale of only one property - addition u/s 50C - assessee itself had leasehold rights in the said property and hence in instant facts, the...

Applicability of Section 56(2)(x) of the Income Tax Act to the transfer or surrender of tenancy rights. It states that Section 56(2)(x) is a deeming provision akin to...

Revision u/s 263 - non-invoking the provision of S.56(2)(vii)(b) by AO - There was a valid and lawful agreement entered by the parties long back in A.Y. 2010-11 only,...

Addition u/s 56(2)(vii)(c)(ii) - allotment of shares to assessee shareholder at a value lower - whether Tax to be paid by the shareholders or the company? - The shares...

Section 56(2)(x) applies to buyers, while Section 50C applies to sellers. The assessee acquired development rights, not immovable property. Based on the Supreme Court's...

Addition u/s 56(2)(vii) r.w.s. 69 - difference between the purchase price i.e. circle rate/stamp duty value and the value determined by the DVO - This section can be...

Addition invoking provisions u/s 56(2)(vii)(b) - assessee only received lease hold right for 99 years - difference of stamp value minus sales consideration - The...

Addition u/s 56(2)(vii)(b) - difference between Stamp duty Valuation and purchase consideration as per registered sale deed of immovable property - whether on date of...

Deemed income from purchase of shares - purchases at lower price than FMV - addition u/s 69 OR u/s 56 (2)(vii)(C) - asset that has been transferred in this transaction...

Addition u/s 56(2)(vii) - A.O has treated the shifting of flat as transfer and booked the difference in stamp duty valuation and the prices paid by the assessee as...

Addition u/s 56(2)(vii)(b)(ii) - FMV of property - The events subsequent to the transaction of “transfer” of the immovable property under consideration will have no...

Addition u/s 56(2)(vii)(b)(ii) - difference between the stamp duty value and purchase value of agricultural land (immovable property) - the agricultural land purchased...

Section 69A applies to unexplained money, but the assessee provided valid documentation proving the remittance was earned outside India as part of employment in UAE and...

Deeming gift of immovable property - applicability of section 56(2)(vii) - gift of immovable property to appellant (done) prior to 1.10.2009 - Transfer Deed of lease...

Quick Updates: