Sangeeta Ravindra Chanadan vs ITO

Parties Involved

Facts Summary

The assessee, Sangeeta Ravindra Chanadan, filed an appeal against the order of the Learned National Faceless Appeal Centre (NFAC), Delhi, which confirmed an addition of Rs. 54,08,000/- under section 56(2)(x) of the Income Tax Act, 1961. The addition was made for the contravention of provisions of section 56(2)(x) of the Act, considering the transfer of tenancy right. The assessee argued that there was no transfer of property and that the section 56(2)(x) is not applicable as there is no transfer of the property as per the Transfer of Property Act, 1882. The assessee also raised the question that no time limit has been mentioned relating to the tenure of the tenancy agreement.…

Legal Issues

• 1. Whether the addition of Rs. 54,08,000/- under section 56(2)(x) of the Income Tax Act, 1961 is justified?
• 2. Whether the provisions of section 56(2)(x) of the Act can be applied in case where merely permission is granted by the landlord to the Appellant to occupy his premises on tenancy basis?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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