Shri Vardhman Stanakwasi Shrawat Sangh vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Shri Vardhman Stanakwasi Shrawat Sangh, a trust engaged in charitable activities, filed an appeal against the order of the Commissioner of Income-tax (Appeals) for the assessment year 2018-19. The assessee had purchased an immovable property in 2001 and registered the deed in 2018. The Assessing Officer made an addition under section 56(2)(x) of the Income-tax Act, 1961, for the difference between the stamp duty value and the purchase consideration. The assessee argued that the date of allotment of the property should be considered for determining the stamp duty value, not the date of registration. The assessee also contended that the provisions of section 56(2)(x) do not apply to trusts registered under section 12A of the Act.…

Legal Issues

• 1. Whether the assessee was in existence on the date of advance payment of ₹11,00,000/- by the assessee to seller on 27-04-2001.
• 2. Whether the payments for purchase of the immovable property were made prior to the date of registration of the sale agreement/conveyance by the Assessee or not.
• 3. Whether the provisions of section 56(2)(x) of the Act are applicable to a trust registered under section 12A of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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