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 \u00a0the \u00a0assessee\u00a0 was allotted \u00a0a new flat of bigger size . \u00a0\u00a0The 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) . \u00a0On appeal\u00a0 the \u00a0Tribunal held that the transaction is \u00a0part 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 \u00a0not applicable. Tribunal also held that\u00a0 \u00a0at the most\u00a0 the \u00a0said transaction may \u00a0attract capital gains in which case the assessee should\u00a0 be\u00a0 entitle for \u00a0deduction of cost of new flat u\/s. 54 \u00a0resulting in no tax liability. The Tribunal directed to delete the addition made u\/s. 56(2)(x). ( AY. 2018 -19 )\u00a0 ITA No. 465\/Mum\/2025 dt .17 -3 -2025 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 56 : Income from other sources -Re development -Alternative accommodation of New flat of bigger size allotted from the builder in extinguishment of the old flat as per the redevelopment agreement \u2013 Cannot be assessed under section 56(2)(x) of the Act \u2013 A 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 – Addition is deleted . [ S.45, 54 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-52171","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dzt","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=52171"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52171\/revisions"}],"predecessor-version":[{"id":52172,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52171\/revisions\/52172"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=52171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=52171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=52171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}