M/S MAMA FOODS,ALWAR vs. ACIT, CENTRAL CIRCLE, ALWAR, ALWAR

ITA 1311/JPR/2025Status: DisposedITAT Jaipur09 October 2026AY 2019-2011 pages
AI SummaryRemanded

What were the facts?

The assessee, M/s Mama Foods, filed an appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], Jaipur, dated 08.08.2025, passed under Section 250 of the Income Tax Act, 1961. The appeal challenges the confirmation of an addition of Rs. 3,89,98,000/-. This addition was made under Section 56(2)(x) of the Act. The assessee had purchased property No. SP-9-MIA, Alwar, from M/s Eicher Goodearth Pvt. Ltd. for Rs. 8,17,94,000/- vide a sale deed dated 27.03.2019. The dispute centers on whether the transaction involved the acquisition of leasehold rights or the purchase of land and building, and the applicability of Section 56(2)(x) to this transaction.

What did the Tribunal hold?

The Tribunal noted that the solitary issue pertains to the applicability of Section 56(2)(x) of the Act to the transaction of purchase of immovable property, resulting in an addition of Rs. 3,89,98,000/-. Section 56(2)(x) states that if a person receives immovable property for consideration less than the stamp duty value, the excess of the stamp duty value over the actual consideration is treated as income from other sources. The assessee firm, M/s Mama Foods, purchased property No. SP-9-MIA, Alwar, from M/s Eicher Goodearth Pvt. Ltd. for Rs. 8,17,94,000/- via a sale deed dated 27.03.2019. The excess of the stamp duty value over the actual consideration was Rs. 3.89 crores. The judgment does not record the Tribunal's specific findings or reasoning on the two grounds of appeal, nor does it mention any operative directions or issues left undecided. The provided text is incomplete and does not contain the Tribunal's decision.

What were the issues?

1. Whether the Ld. CIT(A) erred in confirming the addition of Rs. 3,89,98,000/- under Section 56(2)(x) of the Income Tax Act, 1961, by not accepting the assessee's contention that it acquired only leasehold rights in the land, and not land and building, to which Section 56(2)(x) is applicable. The assessee argued that Section 56(2)(x) applies to the purchase of land and building, not to the acquisition of leasehold rights. The revenue's position is implicit in the confirmation of the addition. 2. Whether the Ld. CIT(A) erred in not accepting the assessee's request to refer the matter to the Departmental Valuation Officer (DVO) as per the third proviso to Section 56(2)(x) of the Act. The assessee contended that the Ld. CIT(A) wrongly held that the assessee had not furnished evidence of requesting the Assessing Officer (AO) to refer the matter to the DVO for property valuation. The revenue's position is implicit in the Ld. CIT(A)'s finding.

Which sections of the Income-tax Act were involved?

Section 56(2)(x),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, “A” BENCH, JAIPUR

Hearing: 20.07.2026Pronounced: 09.10.2026

Per Annapurna Gupta, AM:- The present appeal has been filed by the assessee against the order passed by the Office of the Commissioner of Income Tax, Appeal CIT(A), Jaipur 04 (hereinafter referred to as “Ld. CIT(A)”), dated

P a g e | 2 M/s Mama Foods 08.08.2025 under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

The grounds raised by the assessee read as under:-

1.

The Ld. CIT(A) has erred on facts & in law in confirming the addition of Rs.3,89,98,000/- u/s 56(2)(x) of IT Act, 1961 by not accepting the contention of assessee that it only acquired the leasehold rights in the land purchased from M/s Eicher Goodearth Pvt. Ltd

The order continues below.

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