The assessee, Anil Dattaram Pitale, owned a flat in Co-op Housing Society, which was purchased in FY 1997-98. The society underwent redevelopment, as per the agreement with developer .As pert the terms and conditions of the agreement  the  assessee  was allotted  a new flat of bigger size .   The AO assessed the difference between the stamp duty value of the new flat and the indexed cost of the old flat, as income from other sources u/s. 56(2)(x) of the Income -tax Act based on the stamp valuation . The order of the AO is affirmed by the CIT( A) .  On appeal  the  Tribunal held that the transaction is  part of a redevelopment agreement, resulting in the extinguishment of the old flat and acquisition of the new flat, this is not a receipt of immovable property for inadequate consideration. Therefore provisions of section 56(2)(x) is  not applicable. Tribunal also held that   at the most  the  said transaction may  attract capital gains in which case the assessee should  be  entitle for  deduction of cost of new flat u/s. 54  resulting in no tax liability. The Tribunal directed to delete the addition made u/s. 56(2)(x). ( AY. 2018 -19 )  ITA No. 465/Mum/2025 dt .17 -3 -2025 )