Section 56(2)(x) Applicability Depends on Agreement Date; Mistaken Tax Payment Refundable: ITAT Mumbai

Advertisement Sheetal Santosh Shetye Vs ITO (ITAT Mumbai) Section 56(2)(x) Not Attracted if Property Purchase Agreement Predates the Provision – Excess Tax Paid by Mistake Eligible for Refund The Mumbai ITAT held that where an agreement for purchase of immovable property was executed and the entire consideration was paid in 2009, the applicability of section 56(2)(x) must be examined with reference to the date of the agreement and not the subsequent date of registration. The Tribunal also reiterated that tax voluntarily paid under a mistaken understanding of law does not disentitle th...