Rural Agricultural Land Outside Section 56(2)(vii)(b): ITAT Deletes ₹59.33 Lakh Addition

Vikas Agarwal Vs ITO (ITAT Delhi) The Delhi Bench ‘A’ of the ITAT allowed the assessee’s appeal for AY 2014-15 and deleted the addition of ₹59,32,667 made under section 56(2)(vii)(b) on account of alleged undervaluation of immovable property. The assessee had jointly purchased agricultural land for ₹11 lakh, whereas the stamp duty value was ₹1.88 crore. The Assessing Officer invoked section 56(2)(vii)(b) and taxed the differential value. The CIT(A) upheld the addition, holding that section 56(2)(vii)(b) applies to “any immovable property,” including agricultural land. The Tribu...