Which cases are most cited on Section 56(2)(vii)?

Rajeev Kumar Agarwal v. ACIT (149 ITD 363) — 64 citing judgments; Rajeev Kumar Agarwal v. Addl. CIT (45 Taxmann.com 555) — 53 citing judgments; CIT v. Mukundray K. Shah, Citation No. (160 Taxmann 276) — 39 citing judgments; ICDS Ltd. v. CIT (10 SCC 529) — 24 citing judgments; CIT v. Keiser-EHind Mills Co. Ltd. (128 ITR 486) — 18 citing judgments.

How many judgments are there on Section 56(2)(vii)?

BharatTax indexes 135 ITAT, High Court and Supreme Court judgments that turn on Section 56(2)(vii) of the Income Tax Act, 1961.

Section 56(2)(vii) of the Income Tax Act

Q: What is the leading case on Section 56(2)(vii) of the Income Tax Act?

Rajeev Kumar Agarwal v. ACIT (149 ITD 363) is the decision most relied on for Section 56(2)(vii), cited in 64 judgments. Curative amendments, such as a proviso to Section 40(a)(ia) introduced to remove undue hardship, apply retrospectively even without specific legislative declaration, rectifying shortcomings and obviating unintended difficulties.

The decision most relied on for Section 56(2)(vii) is Rajeev Kumar Agarwal v. ACIT (149 ITD 363), cited in 64 of the 135 judgments on BharatTax that turn on this section.

Leading authorities on Section 56(2)(vii)

Rajeev Kumar Agarwal v. ACIT

149 ITD 363 · 2014 · ITAT

citing judgments

Curative amendments, such as a proviso to Section 40(a)(ia) introduced to remove undue hardship, apply retrospectively even without specific legislative declaration, rectifying shortcomings and obviating unintended difficulties.

Rajeev Kumar Agarwal v. Addl. CIT

45 Taxmann.com 555 · 2014 · ITAT

citing judgments

The disallowance under section 40(a)(ia) for non-deduction or non-remittance of TDS does not apply if the assessee establishes that the recipient has already declared the corresponding income and paid tax on it, as there is no actual loss of revenue. This principle, reflected in the second proviso to section 40(a)(ia), applies retrospectively.

CIT v. Mukundray K. Shah, Citation No.

160 Taxmann 276 · 2007 · Supreme Court

citing judgments

The intention behind Section 2(22)(e) relates to deemed dividends in the context of closely held companies.

ICDS Ltd. v. CIT

10 SCC 529 · Reported

citing judgments

CIT v. Keiser-EHind Mills Co. Ltd.

128 ITR 486 · 1981 · High Court

citing judgments

DCIT v. VVD & Sons (P.) Ltd.

158 Taxmann.com 395 · 2024 · Reported

citing judgments

Gujarat Credit Corpn. Ltd. v. Asstt. CIT

113 ITD 133 · 2008 · ITAT

citing judgments

3/52 GST 355 & CIT v. Odeon Builders (P.) Ltd.

266 Taxmann 461 · 2019 · Supreme Court

citing judgments

DCIT v. National Standard India Ltd.

85 Taxmann.com 87 · 2017 · Reported

citing judgments

Kumar Pappu Singh v. DCIT

101 Taxmann.com 122 · 2019 · Reported

citing judgments

Judgments on Section 56(2)(vii)

FARIDA HAKIMUDDIN SADRIWALA ,MUMBAI vs. COMMISSIONER OF INCOME-TAX (A), MUMBAI

In the result, the appeal by the assessee is allowed for statistical purposes

ITA 931/MUM/2026[2018-2019]Status: DisposedITAT Mumbai27 Mar 2026AY 2018-2019

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Amit Bohra, CAFor Respondent: Shri Pravin Salunkhe, SR. DR

Section 115BSection 250Section 56(2)(vii)Section 69

COMMUNIDADE OF CHICALIM,CHICALIM vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 2(1), PANAJI

In the result, the appeal filed by the assesse is partly allowed

ITA 207/PAN/2024[2016-17]Status: DisposedITAT Panaji17 Mar 2026AY 2016-17

Bench: Shri Pavan Kumar Gadale & Shri G D Padmahshalii T A. No.207/Pan/2024 (A.Y. 2016-17 ) Comunidade Of Chicalim, Vs Acit Circle 2(1), Ground Floor, St Xavier Aaykar Bhavan, . Church Building, Edc, Patto, Chicalim-403802, Panjim South Goa,Goa. Goa-403001. Pan .No. Aaaabc0196P (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent)

Section 139(5)Section 57Section 74

SHALBY LTD.,AHMEDABAD vs. THE DY.CIT, CIRCLE-4(1)(1), AHMEDABAD

In the result, the appeal of the assessee is dismissed

ITA 1005/AHD/2023[2015-16]Status: DisposedITAT Ahmedabad16 Mar 2026AY 2015-16

Bench: Dr. Brr Kumar & Ms. Suchitra Kambleassessment Year 2015-16

For Appellant: Shri Aseem Thakkar, A.RFor Respondent: Shri R P Rastogi, CIT-D.R

Section 143(3)Section 56(2)(ib)Section 56(2)(vii)Section 56(2)(viib)Section 68

SHRI AJAY MAYOR,,AHMEDABAD vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(2),, AHMEDABAD

In the result, the appeal of the assessee is allowed

ITA 1607/AHD/2019[2013-14]Status: DisposedITAT Ahmedabad13 Mar 2026AY 2013-14

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

For Appellant: Shri S. N. Soparkar, Sr. Adv. &For Respondent: Shri C Dharani Nath, Sr. DR

Section 271(1)(c)Section 274

ASCENTECH ENGINEERING SOLUTIONS PRIVATE LIMITED,HYDERABAD vs. DCIT, CIRCLE 1(1), HYDERABAD

ITA 1686/HYD/2025[2017-18]Status: HeardITAT Hyderabad06 Mar 2026AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Madhusudan Sawdiaआ.अपी.सं / Ita.No.1686/Hyd/2025

For Appellant: MS Sree Lekha, AdvocateFor Respondent: Sri Mathivanan S A, Sr. AR

Section 56(2)(vii)Section 56(2)(viib)

TIRUCHANGODU RAMASAMY KHANNAIYANN SARASUWATHI,COIMBATORE vs. DCIT, CENTRAL CIRCLE-1,, COIMBATORE

ITA 3135/CHNY/2025[2014-15]Status: DisposedITAT Chennai04 Mar 2026AY 2014-15

Bench: Shri S.S. Viswanethra Ravi & Shri S. R. Raghunatha

For Appellant: Shri. T. Banusekar, AdvocateFor Respondent: Ms. T. Mythili, JCIT

Section 142A(6)Section 143(3)Section 234ASection 250Section 50CSection 56(2)(vii)

SHRI MANOJ ANAND,DELHI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, PANAJI

ITA 9/PAN/2022[2011-12]Status: DisposedITAT Panaji27 Feb 2026AY 2011-12

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshali

For Appellant: Mr Shrinivas Nayak & Mr Narcinva Lotlikar [‘Ld. AR’]For Respondent: Mr Naveen Kumar [‘Ld. DR’]

Section 132Section 143(3)Section 246ASection 250Section 253(1)Section 56(2)(vii)

SHRI BRIJESH KUMAR ANAND,NEW DELHI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, PANAJI

ITA 8/PAN/2022[2011-12]Status: DisposedITAT Panaji27 Feb 2026AY 2011-12

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshali

For Appellant: Mr Shrinivas Nayak & Mr Narcinva Lotlikar [‘Ld. AR’]For Respondent: Mr Naveen Kumar [‘Ld. DR’]

Section 132Section 143(3)Section 246ASection 250Section 253(1)Section 56(2)(vii)

NEELESH SHYAMSUNDER SABLE,MUMBAI vs. ACIT, CIRCLE 51(2), MUMBAI

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

ITA 8304/MUM/2025[2016-17]Status: DisposedITAT Mumbai25 Feb 2026AY 2016-17

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2016-17

For Respondent: Mr. Sumit Sinha, Adv. (Virtually

Section 56Section 56(2)Section 56(2)(vii)Section 56(2)(viia)Section 56(2)(x)

NAKODA DEVELOPERS,MUMBAI vs. DCIT, MUMBAI

ITA 4500/MUM/2025[2018-19]Status: DisposedITAT Mumbai09 Feb 2026AY 2018-19

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

For Appellant: Shri Bhavesh Shah, ARFor Respondent: Shri Leyaqat Ali Aafaqui, Sr. DR

Section 142A(6)Section 142A(7)Section 143(3)Section 56(2)(x)

JAYSHREEBEN ROHITBHAI PATEL,AHMEDABAD vs. THE ITO, WARD-5(2)(2), AHMEDABAD

In the result, the appeal of the assessee is allowed

ITA 1524/AHD/2025[2012-13]Status: DisposedITAT Ahmedabad04 Feb 2026AY 2012-13

Bench: Dr. B.R.R. Kumar, Vice-Shri Siddhartha Nautiyaljayshreeben Rohitbhai Patel, The Income Tax Officer, Vs. 9, Chinubhai Centre, Ward-5(2)(2), Ashram Road, Ahmedabad. Ahmedabad-380006. [Pan :Aawpp1043 J] (Appellant) .. (Respondent) Appellant By : Shri Vijay H Patel, Ar Respondent By: Shri Kamal Deep Singh, Sr. Dr Date Of Hearing 09.12.2025 Date Of Pronouncement 04.02.2026

For Appellant: Shri Vijay H Patel, ARFor Respondent: Shri Kamal Deep Singh, Sr. DR

Section 133(6)Section 147Section 148Section 250Section 56(2)(vii)Section 68

POONAM ,DELHI vs. DCIT ,CENTRAL CIRCLE-5 , DELHI

In the result, appeal of the assessee is allowed

ITA 6209/DEL/2025[2017-18]Status: DisposedITAT Delhi29 Jan 2026AY 2017-18

Bench: Shri Mahavir Singh, Hon’Ble Vice- & Mrs. Renu Jauhri, Hon’Ble

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Shri Jitender Singh, CIT DR

Section 132Section 142(1)Section 148Section 153ASection 153CSection 250Section 56(2)(vii)

DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4(4), KOLKATA, KOLKATA vs. MIRA BIBI, MURSHIDABAD

ITA 727/KOL/2025[2017-18]Status: DisposedITAT Kolkata20 Jan 2026AY 2017-18

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm

For Appellant: Shri Rajesh Kumar Mishra &For Respondent: Shri S.B. Chakraborthy, DR

TAHIR KHAN,JHANSI vs. INCOME TAX OFFICER-2(3)(1), JHANSI

In the result, assessee’s appeal is allowed

ITA 468/AGR/2025[2014-15]Status: DisposedITAT Agra15 Jan 2026AY 2014-15

Bench: : Shri S. Rifaur Rahman & Shri Sunil Kumar Singhassessment Year: 2014-15

Section 143(3)Section 250Section 271(1)(c)Section 274Section 292BSection 56(2)(vii)

SHRI AJINKYA MAHADEV KANCHAN,PUNE vs. ITO WARD-43(3), PUNE

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 1675/PUN/2025[2014-15]Status: DisposedITAT Pune06 Jan 2026AY 2014-15

Bench: SHRI MANISH BORAD (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)

For Appellant: Shri B. C. Malakar &For Respondent: Shri Bharat Andhale

Section 250Section 250(6)

SHRI MAHADEV TUKARAM KANCHAN,PUNE vs. ITO WARD-14(3), PUNE

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 1674/PUN/2025[2014-15]Status: DisposedITAT Pune05 Jan 2026AY 2014-15

Bench: SHRI MANISH BORAD (Accountant Member), SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1674/PUN/2025 निर्धारण वर्ष / Assessment Year : 2014-15 | Shri Mahadev Tukaram Kanchan, 45, Mahadev Niwas, Parivartan Society, Ashram Road, Urali Kanchan, Pune-412202. PAN : AWXPK5330Q | Vs. | ITO, Ward-14(3), Pune. | | Appellant | | Respondent | Assessee by : Shri B. C. Malakar, Shri Yuvraj V. Bhandare Revenue by : Shri Bharat Andhale Date of hearing : 04.12.2025 Date of pronouncement : 05.01.

For Appellant: Shri B. C. Malakar &For Respondent: Shri Bharat Andhale

Section 56(2)(vii)Section 69

HIMANSHU KUKREJA,DEHRADUN vs. ITO, , DEHRADUN

In the result, Appeal of the Assessee is dismissed

ITA 147/DDN/2024[2016-17]Status: DisposedITAT Dehradun23 Dec 2025AY 2016-17

Bench: Shri S. Rifaur Rahman & Shri Yogesh Kumar U.S.Himanshu Kukreja Vs Income Tax Officer Matta Garg & Co. Ca 15- Income Tax Office, 13-A, Astley Hall, Dehradun, Subhash Road, Dehradun, Uttarakhand Uttarakjhand Pan:Ahipk9462F Appellant Respondent Assessee By Sh. S. K. Matta, Ca Revenue By Sh. A. S. Rana, Sr. Dr Date Of Hearing 12/11/2025 Date Of Pronouncement 23/12/2025

Section 13(1)Section 143(3)Section 144BSection 263Section 56(2)Section 56(2)(vii)

DEPUTY COMMISSIONER OF INCOME-TAX,CENTRAL CIRCLE-1, SURAT, AAYAKAR BHAWAN, MAJURA GATE, SURAT vs. ROYAL DEVELOPERS, NR. IP MISSION SCHOOL, MUGLISA

ITA 860/SRT/2024[2018-19]Status: DisposedITAT Surat23 Dec 2025AY 2018-19

For Appellant: Mr. Suresh K KabraFor Respondent: Shri Ajay Uke, Sr. DR

Section 143(3)Section 56(2)(x)Section 69Section 69A

SH. AMRISH SINGH,SIRSA vs. ACIT/DCIT- INT. TAX, GURGAON

In the result, appeal of the assessee is allowed

ITA 590/CHANDI/2022[2019-20]Status: DisposedITAT Chandigarh23 Dec 2025AY 2019-20

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwalassessment Year: 2018-19 Shri Karan Jeet Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Acgps7292E (Appellant) (Respondent) With Assessment Year: 2018-19 Shri Kabal Jeet Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Acgps7934M (Appellant) (Respondent) With Ita Nos.390/Chandi/2021 & 590/Chandi/2022 Assessment Year: 2018-19 & 2019-20 Shri Amrish Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Aszps6911K (Appellant) (Respondent) Assessee By Sh. Lalit Mohan, Adv. Sh. Ankit Kumar, Adv. Department By Sh. Mahesh Kumar, Cit(Dr) Date Of Hearing 23.12.2025 Date Of Pronouncement 23.12.2025

Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 263Section 28Section 56(2)(vii)

SHRI KABAL JEET SINGH,SIRSA vs. DCIT/ACIT-INT.-TAX,, GURGAON

In the result, appeal of the assessee is allowed

ITA 424/CHANDI/2021[2018-19]Status: DisposedITAT Chandigarh23 Dec 2025AY 2018-19

Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 263Section 28Section 56(2)(vii)

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