Agricultural Land Also Covered by Section 56(2)(x) – ITAT Upholds Addition Based on DVO Valuation

Vinay Indersing Dhupia Vs ITO (ITAT Surat) The Surat ITAT held that section 56(2)(x) applies to “any immovable property”, and therefore even agricultural land falls within its ambit. The assessee had argued that the land purchased was agricultural land and not a “capital asset”, and hence outside the scope of section 56(2)(x). Rejecting the contention, the Tribunal clarified that the concept of “capital asset” is relevant in the seller’s hands for capital gains taxation, but not in the buyer’s hands for section 56(2)(x). The assessee had purchased agricultural land along with c...