The ITAT allowed the assessee's appeal, ruling that the addition ...

Tax Addition Under Non-Existent Section 56(2)(vii)(b)(ii) Invalidated; Agricultural Income and Land Purchase Assessment Errors Corrected

March 25, 2025

Case Laws Income Tax AT

The ITAT allowed the assessee's appeal, ruling that the addition made under Section 56(2)(vii)(b)(ii) was invalid as this provision did not exist during the relevant assessment year. The Tribunal determined this constituted a substantive error rather than mere misquotation of law. Regarding agricultural land purchase, the ITAT held that the AO erroneously disbelieved the assessee's source of investment without contrary evidence or proper investigation, particularly considering the family's substantial landholdings. The Tribunal also found that the CIT(A) incorrectly sustained a partial addition to agricultural income despite acknowledging the assessee owned six acres at the beginning of the financial year plus additional land acquired early in the year, which should have resulted in full allowance of the claimed agricultural income.

View Source

← Previous Next →

The ITAT allowed the assessee's appeal, ruling that the addition ...

Tax Addition Under Non-Existent Section 56(2)(vii)(b)(ii) Invalidated; Agricultural Income and Land Purchase Assessment Errors Corrected

March 25, 2025

Case Laws Income Tax AT

You may also like:

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...

Addition u/s 56(2)(vii)(b) - valuation of land purchased by assessee - deemed gift under section 56(2)(vii)(b)(ii) - Assessee submitted that, actual deed could not be...

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...

Compensation received under an award passed by the Land Acquisition Officer u/s 24(1) of the Right to Fair Compensation and Transparency in Land Acquisition,...

Purchase of two industrial plots of land - addition as Income from other sources u/s 56(2)(vii)(b)(ii) - the fact that the proviso is applicable in the instant case does...

Key legal issues and the Tribunal's holdings: Agricultural land sold by assessee situated beyond municipal limits cannot be treated as capital asset u/s 2(14). Addition...

The ITAT considered an appeal regarding an addition u/s 56(2)(x) where the property in question was agricultural land. The difference between the consideration paid and...

Addition u/s. 56(2)(viib) - transaction of sale of agricultural land - consideration as per the stamp value - The Tribunal admitted additional evidence provided by the...

Income from undisclosed sources - addition of agricultural income - Assessment of agricultural income declared by the assessee for various assessment years was...

The assessee purchased agricultural land whose stamp duty valuation was lower than the actual purchase consideration. The authorities sought to invoke section 56(2)(x)...

Addition of undisclosed income arising out of sale of land - on-money - Once, nature and character of land sold is established as agricultural land not to be treated as...

HC upheld the tax authorities' determination that the disputed land was not agricultural land under Section 2(14)(iii) of the Income Tax Act, making gains from its sale...

Nature of land sold appurtenant to the bungalow - whether agricultural land within the meaning of Section 2(14)(a)(iii) of the Act and hence, its sale proceeds are...

Nature of land sold - capital asset u/s 2(14) or agricultural land - If the previous owner did not carry out agricultural activity on an agricultural land, however did...

Nature of agricultural land sold - In the activities permitted on conversion of the land into farm house is restricted to the environmental friendly residence....

Quick Updates: