Deeming provision of 56(2)(x) cannot be invoked in case of Purchase of agricultural land

Ramnarayan Vs Income Tax Officer (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT) Delhi recently delivered a significant ruling in the case of Ramnarayan vs. Income Tax Officer, addressing the applicability of Section 56(2)(x) of the Income Tax Act. The case revolved around the purchase of agricultural land and whether the deeming provision under Section 56(2)(x) could be invoked. This article provides a detailed analysis of the case, its implications, and the ITAT’s rationale behind the ruling. Detailed Analysis Background of the Case The appellant, Ramnarayan, filed an appeal agai...