ITA No. 389/Mum/2026

Parties Involved

Facts Summary

The assessee, Ashjit Realties Private Limited, is a company engaged in the business of construction and real estate development. The case pertains to the assessment of income for the year 2018-19, focusing on the sale of an immovable property known as 'Gita Gruh'. The sale deed was executed on 13.10.2016, and the entire consideration of Rs. 21,00,00,000/- was paid between March 2011 and August 2012. The property was registered on 15.04.2017. The Assessing Officer treated the difference between the stamp valuation and the consideration as income from other sources under section 56(2)(x) of the Income-tax Act, 1961, and assessed the total income at Rs. 17,69,72,610/-. The assessee appealed against this decision, arguing that the transaction was completed before the registration date and that section 56(2)(x) could not be applied.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in considering the advancement of loans as a cost of the property?
• 2. Whether the Ld. CIT(A) is correct in holding the date of forfeiture of loan instead of date of advancement of loan?
• 3. Whether the Ld. CIT(A) erred in deleting the addition of Rs. 17,68,86,000/- made by the Assessing Officer?
• 4. Whether the Ld. CIT(A) has erred in holding that the date of execution of the sale agreement is the relevant date?
• 5. Whether section 56(2)(x) is applicable to the assessee’s case?
• 6. Whether the Ld. CIT(A) erred in concluding that the transaction was crystallized prior to 01.04.2017?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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