“Section 56(1)(x)(b)”
The decision most relied on for Section 56(1)(x)(b) is Mubarak Gafur Korabu v. ITO (117 Taxmann.com 828), cited in 14 judgments on BharatTax.
Leading authorities on Section 56(1)(x)(b)
Section 56(2)(vii)(b) of the Income-tax Act, 1961, which deals with income from acquisition of property for inadequate consideration, does not apply to agricultural land purchased by an assessee, as it is not considered a capital asset under Section 2(14) of the Act.
For the purpose of determining income under Section 56(2)(vii)(b) or 56(2)(x)(b), the stamp duty value or fair market value of immovable property is to be considered as on the date of payment made by the assessee towards booking of the property, where an agreement for purchase and payment of consideration has been made prior to the date of registration.
Section 56(2)(x) cannot be applied retrospectively to transactions entered into before its incorporation in the statute.
