SHEELA DANIEL,MUMBAI vs. ITO 25(3)(4), MUMBAI, BKC BANDRA (EAST), MUMBAI

ITA 2675/MUM/2024Status: HeardITAT Mumbai02 August 2024AY 2007-085 pages
AI SummaryN/A

What did the Tribunal hold?

Following a decision by a co-ordinate bench in the assessee's own case for an earlier assessment year, the Tribunal held that Section 56(2)(v) of the Act was not applicable for the impugned Assessment Year 2007-08. This was because the amendment concerning immovable property under this section came into effect later (w.e.f. 01.10.2009) and did not have retrospective application. Consequently, the Tribunal set aside the CIT(A)'s order and deleted the addition made by the AO.

What were the facts?

The assessee, a member of "Greater Bombay Housing Society Ltd", was allotted a flat. The AO made an addition of Rs. 19,18,875/- to the assessee's income, treating the acquisition of this "free property" as contravening section 56(2)(v) of the Income-tax Act, 1961. The CIT(A) upheld this assessment order, leading the assessee to appeal before the ITAT.

What were the issues?

Whether the assessment reopening was valid, and if Section 56(2)(v) of the Income-tax Act was applicable for AY 2007-08 for an addition related to "free property" acquisition, along with consequential interest and penalty.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 147,Section 56(2)(v),Section 234,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “J(SMC

Before: SHRI BR BASKARAN & SHRI ANIKESH BANERJEE

For Appellant: Shri Bhupendra Shah, CA
For Respondent: Shri Pravin M Chavan (SRDR)
Hearing: 31/07/2024

PER ANIKESH BANERJEE, J.M:

Instant appeal of the assessee was filed against the order of the National Faceless Appeal Centre, Delhi (NFAC) [for brevity, ‘Ld.CIT(A)'] passed under section 250of the Income-tax Act, 1961 (in short, ‘the Act') for Assessment year 2007-08, date of order09.052024. The impugned order was emanated from the order of the Ld.Income-tax Officer, Ward 25(3)(4), Mumbai passed under section 143(3) read with section 147 of the Act, date of order 30/03/2015. 2 Sheela Daniel

2.

The assessee has raised the following grounds of appeal:-

“[A] Grounds of Appeal Before the HonourableITAT

1.

In the facts and th

The order continues below.

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