SHIVANI SINGH,BOKARO vs. ITO, WARD DHENKANAL, ORISSA

ITA 394/CTK/2026Status: HeardITAT Cuttack08 September 2026AY 2020-215 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the agreement was entered into before the introduction of Section 56(2)(x) and payments were made as per the proviso to the section, the date of agreement should be considered. The addition made by the AO and confirmed by the CIT(A) was deleted.

What were the facts?

The assessee entered into an agreement to purchase an immovable property in 2010 for Rs. 16,82,600, making payments via cheque and RTGS. However, the property registration occurred in 2019 at a higher consideration of Rs. 54,46,900. The AO invoked Section 56(2)(x) treating the difference as income.

What were the issues?

Whether Section 56(2)(x) applies when the property agreement predates the section, but registration occurs after its introduction, with payments made as per the proviso.

Which sections of the Income-tax Act were involved?

Section 56(2)(x)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI GOPALAN GURUSAMY

Hearing: 08/09/2026Pronounced: 08/09/2026

Per George Mathan, JM: This is an appeal filed by the assessee against the order of the CIT(A), NFAC [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2019-20/10441091 dated 16.02.2026 for the assessment year 2020-21. 2. Shri Raj Kumar, AR appeared on behalf of the assessee and Shri Vijay Singh, Sr. D.R. represented on behalf of the revenue.

3.

It was submitted by the ld. AR that the assessee had entered into an agreement for purchase of an immovable property for a consideration of Rs.16,82,600/- with M/s Rebloon Implex Builder

The order continues below.

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