Addition on Property Purchase Deleted as Agricultural Land Was Beyond Municipal Limits

Sujata Prakash Jawale Vs ITO (ITAT Mumbai) ITAT Mumbai Rules Agricultural Land Outside Section 56(2)(vii)(b) Ambit In a significant ruling that provides clarity on the scope of deeming income provisions, the Mumbai ITAT in Sujata Prakash Jawale vs. Income Tax Officer has held that the purchase of agricultural land, which does not qualify as a “capital asset” under Section 2(14) of the Income-tax Act, 1961, cannot trigger an addition under Section 56(2)(vii)(b). This decision champions a purposive interpretation of the law, harmonizing the anti-abuse provision with the fundamental d...