Redevelopment Agreement: Allotment of New Flat Cannot Be Taxed Under Section 56(2)(x)

Anil Dattaram Pitale Vs ITO (ITAT Mumbai) In the case of Anil Dattaram Pitale vs. ITO, ITAT Mumbai ruled in favor of the assessee, overturning the tax authorities’ decision to assess Rs. 19,74,660 under Section 56(2)(x) of the Income Tax Act. The dispute arose when the Assessing Officer (AO) treated the difference between the stamp duty value of a new flat (Rs. 25.17 lakh) received under a redevelopment agreement and the indexed cost of the old flat (Rs. 5.43 lakh) as income from other sources. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the addition. However, ITAT held that...