JALALUDDIN MOHAMMED ALI KHAN,MUMBAI vs. INCOME TAX OFFICER WARD 26(1)(4) MUMBAI, BANDRA EAST

ITA 47/MUM/2024Status: DisposedITAT Mumbai27 September 2024AY 2016-2017Bench: SHRI OM PRAKASH KANT (Accountant Member), SHRI SUNIL KUMAR SINGH ( (Judicial Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee claimed some payments were made by cheque, which the CIT(A) had not examined. Therefore, the issue was restored to the CIT(A) for verification of these payments in light of the second proviso to Section 56(2)(vii).

What were the facts?

The assessee purchased three properties for a value less than the stamp duty valuation. The Assessing Officer treated the difference as deemed income under Section 56(2)(vii). The CIT(A) confirmed the addition, holding that the proviso to Section 56(2)(vii) was not applicable as payments were not made through banking channels on or before the agreement date.

What were the issues?

Whether the proviso to Section 56(2)(vii) is applicable when part of the consideration for property purchase is paid by banking channels on or before the agreement date, despite some cash payments.

Which sections of the Income-tax Act were involved?

Section 56(2)(vii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “F” MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI SUNIL KUMAR SINGH

For Appellant: Mr. Satyaprakash Singh, Ms. Rajeshwari Menon, Sr. DR
Hearing: 27/09/2024

PER OM PRAKASH KANT, AM

This appeal by the assessee is directed against order dated 04.12.2023 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2016-17, raising following grounds:

1.

“The order dated 04/12/2023 bearing No. ITBA/NFAC/S/250/2023-24/ 1058423368(1)Passed under section Jalaluddin Mohammed Ali Khan Jalaluddin Mohammed Ali Khan 2 250 of Income Tax Act. 1961 by the Hon'ble CIT[Appeal], National 250 of Income Tax Act. 1961 by the Hon'ble CIT[Appeal], National 250 of Income Tax Act. 1961 by the Ho

The order continues below.

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