Ish Bhatia vs Income Tax Officer

This assessee’s appeal for Assessment Year 2017-18 arises against the C IT(A)/NFAC, De lhi’ s DIN & order No. ITBA/NFAC/S/250/2025-26/10758867882(1) dated 29.04.2025, in proceed ings u/s 147 of the Income Tax Act, 1 961 (in short “the Act”).

Heard both the p arties at length. Case file perused.

It emerges dur ing the co urse of hearing that both the learned lower author ities have invoked section 56(2)(x) of the Act to add the differe nce between the assessee’s actual purchase price of Rs.9,00,000/- and stamp value of the relevant capital asset of Rs.19,10,000/-, amounting to Rs.10,10,000/-, as income from “ other ” sources.

That being the case, the Revenue could hardly dispute the clinching fact that the legislature has inserted clause (x) in section 56(2) in the Act vide Finance Act 2017 w.e.f. 01.04.2017 w ithout any retrospe ctive effe ct as pe r the re levant Explanatory Me morandum’s clause 33.6 thereto. It is reiterated that the assessee had acquired the asset in issue on 06.06.2016 only. The impugned sectio n 56(2)(x) addition is deleted in very term therefore.

This assessee’s appeal is allowed.