DCIT CC-8(3), MUMBAI, MUMBAI vs. SANJANA CRYOGENIC STORAGES LTD, MUMBAI

ITA 2503/MUM/2026Status: DisposedITAT Mumbai31 August 2026AY 2022-2346 pages
AI SummaryDismissed

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of additions made on account of buy-back of shares, interest expenditure, and written-off loans. The buy-back was at a price lower than the fair market value, and the loans were written off as bad debts.

What did the Tribunal hold?

The Tribunal held that the buy-back of own shares did not result in the receipt of 'property' under Section 56(2)(x). It also found that interest-free advances were made from surplus own funds and that the written-off loans arose from a regular lending business.

What were the issues?

Whether the buy-back of own shares at a price lower than FMV is taxable under Section 56(2)(x), whether interest disallowance for advances is justified, and whether written-off loans qualify as bad debts from a business activity.

Which sections of the Income-tax Act were involved?

Section 56(2)(x),Section 36(1)(iii),Section 36(1)(vii),Section 36(2)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘F’ BENCH

For Appellant: Shri P.J. Pardiwala, Sr. Adv, Shri Sukhsagar Syal
For Respondent: Shri Nishant Samaiya
Hearing: 03/08/2026Pronounced: 31/08/2026

PER AMIT SHUKLA (J.M): The aforesaid appeal has been preferred by the Revenue against the impugned order dated 30.12.2025 passed by the learned Commissioner of Income Tax (Appeals)-50, Mumbai [“CIT(A)”], for the Assessment Year 2022-23, arising out of the assessment order dated 30.03.2025 passed under section 2 Sanjana Cryogenic Storages Ltd. 143(3) of the Income-tax Act, 1961 (“the Act”). In the grounds of appeal, the Revenue has challenged the relief granted by the learned CIT(A) principally on the following issues: (i) deletion of addition of ₹43,32,82,200 made under section 56(2)(x) on account of the alleged difference between the fair market value of shares and the consideration pa

The order continues below.

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