Section 56(2) of the Income Tax Act

Income-tax Act, 2025: s.92

Section 56(2) falls under section 56 of the Income-tax Act, 1961, which corresponds to section 92 (Income from other sources) of the Income-tax Act, 2025.

Read section 92 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 56(2) is Global Logic India Ltd. v. Dy. CIT (117 Taxmann.com 39), cited in 11 of the 166 judgments on BharatTax that turn on this section.

Leading authorities on Section 56(2)

Global Logic India Ltd. v. Dy. CIT
117 Taxmann.com 39 · 2020 · Reported
11
citing judgments

A company undergoing restructuring activity during the relevant financial year may be rejected as a comparable in transfer pricing analysis, as such events can impact its profitability.

Prism Cement Ltd. v. JCIT
101 ITD 103 · 2006 · ITAT
10
citing judgments

The Income Tax Appellate Tribunal (ITAT) decision in Prism Cement Ltd. v. JCIT (2006) is cited for the proposition that the nature of a transaction involving non-convertible debentures (NCDs) may be distinguished from the forfeiture of a loan when determining tax implications, and that a CIT(A) might err in deleting additions without further inquiry if the apparent is not the real.

CIT(LTU) & Another v. IBM Global Services India Pvt Ltd.
429 ITR 386 · 2020 · High Court
10
citing judgments

If statutory authorities responsible for overseeing a particular Act have not taken any action, the assessing officer cannot allege a violation of that Act.

177 TAXMAN 35 (GUJ) (g) Commissioner of Income-tax-V v. Real Time Marketing (P.) Ltd.
173 Taxmann 41 · 2008 · High Court
9
citing judgments
Khinvasara Investment (P.) Ltd. v. JCIT, SR-5, Pune
110 ITD 198 · 2008 · ITAT
7
citing judgments
JCIT v. Saheli Leasing & Industries Ltd.
324 ITR 170 · 2010 · Supreme Court
7
citing judgments
Vikram Krishna v. PCIT
114 Taxmann.com 197 · 2020 · Supreme Court
6
citing judgments
DepakFertilisers and Petrochemicals Copn. Ltd. v. DCIT
118 ITD 546 · 2009 · ITAT
6
citing judgments
16 (Mum. Trib.) (viii) Hackett Group (India) Ltd. v. DCIT
132 Taxmann.com 220 · 2021 · High Court
6
citing judgments
Ahmedabad Urban Development Authority v. ACIT(E) 120171
369 ITR 323 · High Court
6
citing judgments

Judgments on Section 56(2)

Pramod Dwivedi, Raipur vs. ITO, Ward-1(2), Raipur

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 597/RPR/2026[2024-25]Status: DisposedITAT Raipur07 Oct 2026AY 2024-25

Bench: Shri Partha Sarathi Chaudhury & Shri Avdhesh Kumar Mishraआयकर अपील सं. / Ita No.597/Rpr/2026 "नधा"रण वष" / Assessment Year : 2024-25 Pramod Dwivedi H-6, Anand Niketan, Avanti Vihar, Raipur (C.G.)-492 001 Pan: Agppd2806G

For Appellant: Shri Hardik Jain, CAFor Respondent: Shri Piyush Tripathi, Sr. DR
Section 10Section 10(1)Section 133(6)Section 2(14)(iii)Section 56(2)Section 69A

Nitin Santosh Singh, Mumbai vs. Ward 24(3)(1), Mumbai, Piramal Chamber

In the result, the appeal of the assessee bearing ITA No

ITA 5261/MUM/2026[2018-19]Status: DisposedITAT Mumbai24 Sept 2026AY 2018-19

Bench: Shri Anikesh Banerjee & Ms. Ratna Dasgupta

For Appellant: BLZPS8494P
Section 143(3)Section 144BSection 250Section 56(2)

Jabalpur Development Authority, Jabalpur vs. Income Tax Officer 2(4), Jabalpur

ITA 67/JAB/2018[2015-16]Status: DisposedITAT Jabalpur22 Sept 2026AY 2015-16

Bench: Hon’Ble Shri Kul Bharat & Shri G.D. Padmahshalisr. Appeal No Assessment Appellant Respondent Pan Of Year Assessee Acit Circle 2(1), 065/Jab/2018 Authority, Jabalpur Civic Centre, Marhatal, 2013-14 Jabalpur Acit Circle 2(1), Development Jabalpur Authority, Civic Centre, Marhatal, Jabalpur Acit Circle 2(1), Aaajj0164E 066/Jab/2018 Authority, Jabalpur Civic Centre, 2014-15 Marhatal, Jabalpur Acit Circle 2(1), Jabalpur 122/Jab/2018 Jabalpur Development Authority, Civic Centre, Marhatal, Jabalpur Ito Ward 2(4), 067/Jab/2018 Authority, Jabalpur Civic Centre, 2015-16 Marhatal, Jabalpur Asst. Cit 2(1), Jabalpur 131/Jab/2018 Jabalpur 2Nd Floor, Development Annex Building, Authority, Napier Town, Civic Centre, Jabalpur. Marhatal, Jabalpur Represented Assessee By: Mr. Anil Kumar Gupta [‘Ld. Ar’] Revenue By: Mr. Dhananjay Wanjari [‘Ld. Dr’] Date Of Conclusive Hearing : 18/08/2026 Date Of Pronouncement : 22/09/2026

For Appellant: Mr. Anil Kumar Gupta [‘Ld. AR’]For Respondent: Mr. Dhananjay Wanjari [‘Ld. DR’]
Section 143(1)Section 143(2)Section 143(3)Section 145(3)Section 246ASection 250Section 28Section 56(2)

Jabalpur Development Authority, Jabalpur vs. Assistant Commissioner of Income Tax Circle 2(1), Jabalpur

ITA 66/JAB/2018[2014-15]Status: DisposedITAT Jabalpur22 Sept 2026AY 2014-15

Bench: Hon’Ble Shri Kul Bharat & Shri G.D. Padmahshalisr. Appeal No Assessment Appellant Respondent Pan Of Year Assessee Acit Circle 2(1), 065/Jab/2018 Authority, Jabalpur Civic Centre, Marhatal, 2013-14 Jabalpur Acit Circle 2(1), Development Jabalpur Authority, Civic Centre, Marhatal, Jabalpur Acit Circle 2(1), Aaajj0164E 066/Jab/2018 Authority, Jabalpur Civic Centre, 2014-15 Marhatal, Jabalpur Acit Circle 2(1), Jabalpur 122/Jab/2018 Jabalpur Development Authority, Civic Centre, Marhatal, Jabalpur Ito Ward 2(4), 067/Jab/2018 Authority, Jabalpur Civic Centre, 2015-16 Marhatal, Jabalpur Asst. Cit 2(1), Jabalpur 131/Jab/2018 Jabalpur 2Nd Floor, Development Annex Building, Authority, Napier Town, Civic Centre, Jabalpur. Marhatal, Jabalpur Represented Assessee By: Mr. Anil Kumar Gupta [‘Ld. Ar’] Revenue By: Mr. Dhananjay Wanjari [‘Ld. Dr’] Date Of Conclusive Hearing : 18/08/2026 Date Of Pronouncement : 22/09/2026

For Appellant: Mr. Anil Kumar Gupta [‘Ld. AR’]For Respondent: Mr. Dhananjay Wanjari [‘Ld. DR’]
Section 143(1)Section 143(2)Section 143(3)Section 145(3)Section 246ASection 250Section 28Section 56(2)

Jabalpur Development Authority, Jabalpur vs. Assistant Commissioner of Income Tax Circle 2(1), Jabalpur

ITA 65/JAB/2018[2013-14]Status: DisposedITAT Jabalpur22 Sept 2026AY 2013-14

Bench: Hon’Ble Shri Kul Bharat & Shri G.D. Padmahshalisr. Appeal No Assessment Appellant Respondent Pan Of Year Assessee Acit Circle 2(1), 065/Jab/2018 Authority, Jabalpur Civic Centre, Marhatal, 2013-14 Jabalpur Acit Circle 2(1), Development Jabalpur Authority, Civic Centre, Marhatal, Jabalpur Acit Circle 2(1), Aaajj0164E 066/Jab/2018 Authority, Jabalpur Civic Centre, 2014-15 Marhatal, Jabalpur Acit Circle 2(1), Jabalpur 122/Jab/2018 Jabalpur Development Authority, Civic Centre, Marhatal, Jabalpur Ito Ward 2(4), 067/Jab/2018 Authority, Jabalpur Civic Centre, 2015-16 Marhatal, Jabalpur Asst. Cit 2(1), Jabalpur 131/Jab/2018 Jabalpur 2Nd Floor, Development Annex Building, Authority, Napier Town, Civic Centre, Jabalpur. Marhatal, Jabalpur Represented Assessee By: Mr. Anil Kumar Gupta [‘Ld. Ar’] Revenue By: Mr. Dhananjay Wanjari [‘Ld. Dr’] Date Of Conclusive Hearing : 18/08/2026 Date Of Pronouncement : 22/09/2026

For Appellant: Mr. Anil Kumar Gupta [‘Ld. AR’]For Respondent: Mr. Dhananjay Wanjari [‘Ld. DR’]
Section 143(1)Section 143(2)Section 143(3)Section 145(3)Section 246ASection 250Section 28Section 56(2)

Assistant Commissioner of Income Tax Circle 2(1), Jabalpur vs. Jabalpur Development Authority, Jabalpur

ITA 131/JAB/2018[2014-15]Status: DisposedITAT Jabalpur22 Sept 2026AY 2014-15

Bench: Hon’Ble Shri Kul Bharat & Shri G.D. Padmahshalisr. Appeal No Assessment Appellant Respondent Pan Of Year Assessee Acit Circle 2(1), 065/Jab/2018 Authority, Jabalpur Civic Centre, Marhatal, 2013-14 Jabalpur Acit Circle 2(1), Development Jabalpur Authority, Civic Centre, Marhatal, Jabalpur Acit Circle 2(1), Aaajj0164E 066/Jab/2018 Authority, Jabalpur Civic Centre, 2014-15 Marhatal, Jabalpur Acit Circle 2(1), Jabalpur 122/Jab/2018 Jabalpur Development Authority, Civic Centre, Marhatal, Jabalpur Ito Ward 2(4), 067/Jab/2018 Authority, Jabalpur Civic Centre, 2015-16 Marhatal, Jabalpur Asst. Cit 2(1), Jabalpur 131/Jab/2018 Jabalpur 2Nd Floor, Development Annex Building, Authority, Napier Town, Civic Centre, Jabalpur. Marhatal, Jabalpur Represented Assessee By: Mr. Anil Kumar Gupta [‘Ld. Ar’] Revenue By: Mr. Dhananjay Wanjari [‘Ld. Dr’] Date Of Conclusive Hearing : 18/08/2026 Date Of Pronouncement : 22/09/2026

For Appellant: Mr. Anil Kumar Gupta [‘Ld. AR’]For Respondent: Mr. Dhananjay Wanjari [‘Ld. DR’]
Section 143(1)Section 143(2)Section 143(3)Section 145(3)Section 246ASection 250Section 28Section 56(2)

Assistant Commissioner of Income Tax Circle 2(1), Jabalpur vs. Jabalpur Development Authority, Jabalpur

ITA 122/JAB/2018[2014-15]Status: DisposedITAT Jabalpur22 Sept 2026AY 2014-15

Bench: Hon’Ble Shri Kul Bharat & Shri G.D. Padmahshalisr. Appeal No Assessment Appellant Respondent Pan Of Year Assessee Acit Circle 2(1), 065/Jab/2018 Authority, Jabalpur Civic Centre, Marhatal, 2013-14 Jabalpur Acit Circle 2(1), Development Jabalpur Authority, Civic Centre, Marhatal, Jabalpur Acit Circle 2(1), Aaajj0164E 066/Jab/2018 Authority, Jabalpur Civic Centre, 2014-15 Marhatal, Jabalpur Acit Circle 2(1), Jabalpur 122/Jab/2018 Jabalpur Development Authority, Civic Centre, Marhatal, Jabalpur Ito Ward 2(4), 067/Jab/2018 Authority, Jabalpur Civic Centre, 2015-16 Marhatal, Jabalpur Asst. Cit 2(1), Jabalpur 131/Jab/2018 Jabalpur 2Nd Floor, Development Annex Building, Authority, Napier Town, Civic Centre, Jabalpur. Marhatal, Jabalpur Represented Assessee By: Mr. Anil Kumar Gupta [‘Ld. Ar’] Revenue By: Mr. Dhananjay Wanjari [‘Ld. Dr’] Date Of Conclusive Hearing : 18/08/2026 Date Of Pronouncement : 22/09/2026

For Appellant: Mr. Anil Kumar Gupta [‘Ld. AR’]For Respondent: Mr. Dhananjay Wanjari [‘Ld. DR’]
Section 143(1)Section 143(2)Section 143(3)Section 145(3)Section 246ASection 250Section 28Section 56(2)

Assistant Commissioner of Income Tax Circle 2(1), Jabalpur vs. Jabalpur Development Authority, Jabalpur

ITA 121/JAB/2018[2013-14]Status: DisposedITAT Jabalpur22 Sept 2026AY 2013-14

Bench: Hon’Ble Shri Kul Bharat & Shri G.D. Padmahshalisr. Appeal No Assessment Appellant Respondent Pan Of Year Assessee Acit Circle 2(1), 065/Jab/2018 Authority, Jabalpur Civic Centre, Marhatal, 2013-14 Jabalpur Acit Circle 2(1), Development Jabalpur Authority, Civic Centre, Marhatal, Jabalpur Acit Circle 2(1), Aaajj0164E 066/Jab/2018 Authority, Jabalpur Civic Centre, 2014-15 Marhatal, Jabalpur Acit Circle 2(1), Jabalpur 122/Jab/2018 Jabalpur Development Authority, Civic Centre, Marhatal, Jabalpur Ito Ward 2(4), 067/Jab/2018 Authority, Jabalpur Civic Centre, 2015-16 Marhatal, Jabalpur Asst. Cit 2(1), Jabalpur 131/Jab/2018 Jabalpur 2Nd Floor, Development Annex Building, Authority, Napier Town, Civic Centre, Jabalpur. Marhatal, Jabalpur Represented Assessee By: Mr. Anil Kumar Gupta [‘Ld. Ar’] Revenue By: Mr. Dhananjay Wanjari [‘Ld. Dr’] Date Of Conclusive Hearing : 18/08/2026 Date Of Pronouncement : 22/09/2026

For Appellant: Mr. Anil Kumar Gupta [‘Ld. AR’]For Respondent: Mr. Dhananjay Wanjari [‘Ld. DR’]
Section 143(1)Section 143(2)Section 143(3)Section 145(3)Section 246ASection 250Section 28Section 56(2)

Sunil Agarwal, Hyderabad vs. ITO, Ward -5(1), Hyderabad

ITA 989/HYD/2026[2018-19]Status: DisposedITAT Hyderabad18 Sept 2026AY 2018-19

Bench: Shri Ravish Sood, Hon’Ble & Shri Madhusudan Sawdia, Hon’Ble

For Appellant: AGOPA2558D
Section 143(2)Section 143(3)Section 50C(2)Section 56(2)Section 56(2)(x)

Pareshkumar Rameshchandra Patel, Surat vs. DCIT, Circle-1(1)(1), Surat

ITA 11/SRT/2026[2014-15]Status: DisposedITAT Surat01 Sept 2026AY 2014-15
For Appellant: Shri Esmayeel Saherwala, CAFor Respondent: Shri Ashish Kumar, Sr. DR
Section 10(37)Section 133(6)Section 143(2)Section 143(3)Section 56(2)Section 56(2)(vii)

Mallikarjuna Prasad Jonnavittula, Machilipatnam vs. Income Tax Officer, Ward 1, Machilipatnam

ITA 201/VIZ/2024[2014-15]Status: DisposedITAT Visakhapatnam29 Jul 2026AY 2014-15

Bench: Shri Ravish Sood, Hon’Ble & Shri Omkareshwar Chidara, Hon’Ble

For Appellant: AJMPP0421H
Section 147Section 4(1)Section 5(1)Section 56(2)

Mallikarjuna Prasad Jonnavittula, Machilipatnam vs. Income Tax Officer, Ward 1, Machilipatnam

ITA 200/VIZ/2024[2013-14]Status: DisposedITAT Visakhapatnam29 Jul 2026AY 2013-14

Bench: Shri Ravish Sood, Hon’Ble & Shri Omkareshwar Chidara, Hon’Ble

For Appellant: AJMPP0421H
Section 147Section 4(1)Section 5(1)Section 56(2)

Krishna Chauhan, Shimla vs. Income Tax Officer, Ward -1, Shimla

In the result, the appeal of the assessee is dismissed

ITA 734/CHANDI/2025[2015-16]Status: DisposedITAT Chandigarh07 Jul 2026AY 2015-16

Bench: Shri Laliet Kumarआयकर अपील सं./ Ita No. 734/Chd/2025 "नधा"रण वष" / Assessment Year: 2015-26 Smt. Krishna Chauhan, The Ito, Shyam Kutir, Kusumpti, Vs Ward 1, Shimla (Hp). Shimla. "थायी लेखा सं./Pan No: Ahdpc1634L अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Pranav Jain, Advocate Revenue By : Shri Prabodh Sharma, Addl. Cit, Sr.Dr Date Of Hearing : 25.06.2026 Date Of Pronouncement : 07.07.2026

For Appellant: Shri Pranav Jain, AdvocateFor Respondent: Shri Prabodh Sharma, Addl. CIT, Sr.DR
Section 10Section 56(2)Section 80C

Bharat Bheraji Barot, Ahmedabad vs. The Income Tax Officer, Ward 1(2)(1), Ahmedabad

ITA 1104/AHD/2026[2020-21]Status: DisposedITAT Ahmedabad30 Jun 2026AY 2020-21
For Appellant: Shri Parimalsinh B ParmarFor Respondent: Smt. Mamta Singh, Sr. DR
Section 143(3)Section 154Section 154oSection 234ASection 270ASection 56(2)

Satya Prakash Soni, Lucknow vs. Income Tax Officer, Lucknow

In the result, the appeal of the assessee is partly allowed

ITA 133/LKW/2025[2013-2014]Status: DisposedITAT Lucknow23 Jun 2026AY 2013-2014

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y. 2013-14 Satya Prakash Soni, Vs Income Tax Officer B-17, Indira Nagar, Lucknow Pan: Anqps7187P (Appellant) (Respondent) Assessee By: Sh. P.K. Kapoor, C.A. Revenue By: Sh. R.K. Agarwal, Cit Dr Date Of Hearing: 25.03.2026 Date Of Pronouncement: 23.06.2026 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Against The Order Of The Ld. Cit(A) Under Section 250 Of The Income Tax Act, 1961 Dated 5.12.2024, Wherein The Ld. Cit(A) Has Partly Allowed The Appeals Of The Assessee That Were Filed Against The Order Of The Assessing Officer Under Section 147 R.W.S. 143(3) For The A.Y. 2013-14 On 27.03.2022. The Grounds Of Appeal Are As Under:- “1. Because The Entire Assessment Proceedings Commencing With Recording Of Reason To Believe & Concluding With Passing Of The Assessment Order Dated 27.03.2022 Are Void Ab Initio As The Very Formation Of The Assessment Stands Vitiated On Account Of Jurisdictional Infirmity & Breach Of Mandatory Procedure & Consequently, The Said Assessment Order Deserved To Be Held As Illegal, Bad In Law & Without Jurisdiction. 2. Because The Id. "Cit(A)" Has Erred In Law & On Facts In Not Quashing The Assessment Order Even Though The Notice U/S 148 Of The Act, In Pursuance Of Which The Assessment Proceedings U/S 147 Were Initiated, Having Been Issued After Expiry Of Six Years, Was Barred By Limitation. 3. Because The Id. "Cit(A)" Has Erred In Law & On Facts In Not Quashing The Assessment Order By Holding The Same As Illegal, Bad In Law & Without Jurisdiction Even Though Reason To Believe Was Recorded On Incorrect Facts.

For Appellant: Sh. P.K. Kapoor, C.AFor Respondent: Sh. R.K. Agarwal, CIT DR
Section 147Section 148Section 151Section 153Section 155Section 250Section 50CSection 50C(1)Section 56(2)

Sanjay Sureka, Kolkata vs. D.C.I.T., Central Circle - 3.3, Kolkata

In the result, the appeal of the assessee is allowed

ITA 1895/KOL/2024[2015-2016]Status: DisposedITAT Kolkata01 Jun 2026AY 2015-2016

Bench: Shri Rajesh Kumar, Am Sanjay Sureka Dcit, Central Circle 3(3) 5A, Rajhans Apartment, 6, Aayakar Bhawan Poorva, Hastings Park Road, Alipore, 110, Shanti Pally, Vs. Kolkata-700027, West Bengal Kolkata-700107, West Bengal (Appellant) (Respondent) Pan No. Akops6380B Assessee By : Shri Miraj D Shah, Ar Revenue By : Shri Monalisa Pal Mukherjee, Dr Date Of Hearing: 20.05.2026 Date Of Pronouncement: 01.06.2026

For Appellant: Shri Miraj D Shah, ARFor Respondent: Shri Monalisa Pal Mukherjee, DR
Section 132Section 153ASection 56(2)

Shweta Narendra Shivatarkar, Mumbai vs. Income Tax Officer- 19(3)(1), Mumbai

In the result, the appeal under consideration i

ITA 1721/MUM/2026[2018-19]Status: DisposedITAT Mumbai20 May 2026AY 2018-19

Bench: Shri Narender Kumar Choudhry & Shri Jagadish

For Appellant: Ms. Prajakta, ld. CAFor Respondent: Shri Saurabh Raskar, (SR. D.R.)
Section 144Section 147Section 250Section 270ASection 271A

Shweta Narendra Shivatarkar, Mumbai vs. Income Tax Officer-19(3)(1), Mumbai

In the result, the appeal under consideration i

ITA 1720/MUM/2026[2018-19]Status: DisposedITAT Mumbai20 May 2026AY 2018-19

Bench: Shri Narender Kumar Choudhry & Shri Jagadish

For Appellant: Ms. Prajakta, ld. CAFor Respondent: Shri Saurabh Raskar, (SR. D.R.)
Section 144Section 147Section 250Section 270ASection 271A

Shweta Narendra Shivatarkar, Mumbai vs. Income Tax Officer-19(3)(1), Mumbai

In the result, the appeal under consideration i

ITA 1719/MUM/2026[2018-19]Status: DisposedITAT Mumbai20 May 2026AY 2018-19

Bench: Shri Narender Kumar Choudhry & Shri Jagadish

For Appellant: Ms. Prajakta, ld. CAFor Respondent: Shri Saurabh Raskar, (SR. D.R.)
Section 144Section 147Section 250Section 270ASection 271A

Bani A K Dhillon, Shamgarh vs. Income Tax Officer, Ward 1, Karnal

Appeal is allowed for statistical purposes

ITA 248/DEL/2026[2011-12]Status: DisposedITAT Delhi12 May 2026AY 2011-12

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandraassessment Year: 2011-12 Vs. Income Tax Officer Bani A K Dhillon Killa Shamgarh, Village Ward-1 Shamgarh Karnal District Karnal- 132116 Haryana Pan: Alwpk5819Q (Appellant) (Respondent) Assessee By Sh. Harry Rikhy, Adv. Department By Sh. Om Prakash, Sr. Dr

Section 147Section 56(2)Section 56(2)(viib)