| |
| The Tax Publishers2020 TaxPub(DT) 2811 (Pune-Trib) INCOME TAX ACT, 1961
Section 56(2)(vii)(b)
Since agricultural land purchased by assessee was not governed by provisions of section 56(2)(vii)(b) being not capital asset and also because of fact that assessee was holding it as stock in trade, thus, it was outside the purview of said section and no addition could be made in hands of assessee.
|
Income from other sources - Applicability of provision of section 56(2)(vii)(b) - Agricultural land held by assessee as stock in trade -
Assessee challenged order of CIT(A) upholding addition made by AO under section 56(2)(vii)(b) representing difference between stamp duty value and actual purchase consideration. Assessee contended that in spite of fact the provisions of said section were not applicable to him inasmuch as agricultural land purchased by him was not a 'property' as agricultural land does not fall in definition of capital asset. Held: Case of assessee was that it purchased agricultural asset which was held as 'Current Asset' by him and when same was sold, business income was declared on said transaction. Assessee also stressed that agricultural land purchased was not capital asset, for which reliance was placed on definition of 'capital asset' under section 2(14). Agricultural land purchased by assessee was not governed by the provisions of section 56(2)(vii)(b) being not capital asset and also because of fact that assessee was holding it as stock in trade. Thus, it was outside the purview of said section and no addition could be made in hands of assessee.
Distinguished:ITO v. Trilok Chand Sain (2019) 101 taxmann.com 391 (Jaipur-Trib.) : 2019 TaxPub(DT) 0790 (Jp-Trib)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2015-16
IN THE ITAT, PUNE 'SMC' BENCH
 SUBSCRIBE FOR FULL CONTENT
|