Stamp Duty Valuation Difference In Purchase of Land By Builder Not Taxable U/S 56 & Entries In Books Not Decisive : Itat Bangalore

Mithun Kerur Vs ITO (ITAT Bangalore)

The Income Tax Appellate Tribunal (ITAT), Bengaluru Bench, has overturned an addition of Rs. 23.33 lakh made against an individual assessee, clarifying the scope of Section 56(2)(vii)(b)(ii) of the Income Tax Act, 1961. The ruling, delivered on May 22, 2025, in ITA No. 151/Bang/2025 for the assessment year 2015-16, underscores that the provision does not apply to transactions where immovable property is acquired as stock-in-trade in the regular course of business.

The case originated from

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