MAHESH KATRAGADDA,HYDERABAD vs. DCIT., CENTRAL CIRCLE-1(2), HYDERABAD

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ITA 659/HYD/2025Status: DisposedITAT Hyderabad30 September 2025AY 2018-19Bench: SHRI G. MANJUNATHA, HON’BLE (Accountant Member), SHRI RAVISH SOOD, HON'BLE (Judicial Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that Section 56(2)(x) applies to 'any immovable property' and is wider than the definition of 'capital asset'. The exclusion of rural agricultural land from 'capital asset' under Section 2(14) is not relevant for Section 56(2)(x). The contention regarding the tolerance limit was also rejected.

What were the facts?

The assessee purchased agricultural land, declaring a consideration lower than the stamp duty value. The Pr. CIT invoked Section 263, directing the AO to reframe the assessment. The AO made an addition under Section 56(2)(x) for the difference between the purchase consideration and stamp duty value.

What were the issues?

Whether Section 56(2)(x) is applicable to agricultural land not considered a capital asset and whether the difference between purchase consideration and stamp duty value falls within the tolerance limit.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263,Section 132,Section 143(2),Section 56(2)(x),Section 2(14),Section 153A,Section 153C,Section 34(4)

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Income Tax Appellate Tribunal, Hyderabad ‘A’ Bench, Hyderabad

For Appellant: Shri Mahidar, DR

आदेशकी �ितिलिप अ�ेिषत/ Copy of the order forwarded to:- 1. िनधा�रती/The Assessee : Shri Mahesh Katragadda, 8-2- 293/82/A/839-1, Road No.42, Jubilee Hills, Hyderabad 2. राज�/ The Revenue : The DCIT, Central Circle-1(2), Aayakar Bhavan, Basheerbagh, Hyderabad 3. The Principal Commissioner of Income Tax (Central), Hyderabad 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, हैदराबाद / DR, ITAT, Hyderabad 5. गाड�फ़ाईल / Guard file

आदेशानुसार / BY ORDER

Sr. Private Secretary ITAT, Hyderabad

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