MASOOD AHMAD KHAN,SIDDHARTHNAGAR vs. ITO SIDDHARTH NAGAR , BASTI

ITA 116/LKW/2025Status: DisposedITAT Lucknow13 August 2026AY 2016-175 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. It set aside the CIT(A)'s order and restored the issue to the Assessing Officer for verification of whether the land was agricultural at the time of purchase.

What were the facts?

The assessee purchased immovable property, and the Assessing Officer treated the difference between the stamp duty value and the actual sale consideration as income under Section 56(2)(vii)(b). Additionally, an amount claimed as cash gifts was added to the income due to lack of evidence.

What were the issues?

Whether rural agricultural land is a capital asset for the purpose of Section 56(2)(vii)(b) and whether the addition on account of alleged cash gifts was justified without specifying the relevant section.

Which sections of the Income-tax Act were involved?

Section 56(2)(vii)(b),Section 143(2),Section 2(14),Section 127

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘SMC’, LUCKNOW

Before: SHRI KUL BHARAT

For Appellant: Shri Akash Agarwal, CA
For Respondent: Smt. Pratibha Singh, Addl. CIT-DR
Hearing: 06.08.2026

PER KUL BHARAT : V.P.

This appeal has been filed by the assessee is directed against the order of learned Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre, Delhi [for short ‘learned CIT(A)’] dated 19.06.2024 pertaining to the AY 2016-17. The assessee has raised the following grounds of appeal:

“1. That the Ld. Commissioner of Income Tax (Appeal) has erred in law by confirming the order passed by the Ld. Assessing Officer by invoking section 56(2)(vii) (b) of the Income Tax Act, 1961 wherein the immovable property being agricultural land is brought within the purview of property which is subject to tax whereas in explanation to thi

The order continues below.

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