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July 2025

S. 56 – The term “immovable property” in section 56(2)(x) includes agricultural land. S. 56 – Where the assessee disputes the stamp duty value, the Assessing Officer is required to refer the matter to District Valuation Officer (DVO).

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 3 mins

23 (2025) 174 taxmann.com 1111 (Ahd Trib)

Clayking Minerals LLP vs. ITO

ITA No.: 82 (Ahd) of 2025

A.Y.: 2018-19 Dated: 27.05.2025

S. 56 – The term "immovable property" in section 56(2)(x) includes agricultural land.

S. 56 – Where the assessee disputes the stamp duty value, the Assessing Officer is required to refer the matter to District Valuation Officer (DVO).

FACTS

The assessee filed its income tax return on 30.08.2018, declaring a loss of ₹1,24,010 for AY 2018-19. Subsequently, the case was selected for limited scrutiny to examine whether the purchase value of a property was less than the value determined by the stamp valuation authority under section 56(2)(x). During the course of assessment proceedings, the AO noted that the assessee purchased a property for ₹42,72,000 having stamp duty value of ₹1,15,62,880. The assessee contended that since the property was agricultural land at the time of purchase, it did not qualify as a "capital asset" as per section 2(14), and therefore, section 56(2)(x) was not applicable. The AO held that section 56(2)(x) was attrac

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