Vikas Aggarwal vs ITO

Parties Involved

Facts Summary

The assessee, Shri Vikas Aggarwal, did not file his return for Assessment Year 2015-16. According to the department, the assessee purchased an immovable property for Rs. 11,00,000 jointly with another person. The circle rate valuation of the property was Rs. 1,88,98,000, making the total investment Rs. 24,46,020. The assessee’s 1/3rd share was Rs. 8,15,340. Since the investment was unexplained and provisions of section 56(2)(vii)(b) were applicable, a notice under section 148 was issued. The assessee filed a return declaring income of Rs. 4,96,270. The Assessing Officer invoked section 56(2)(vii)(b) to make an addition of Rs. 59,32,667 to the returned income, completing the assessment at a total income of Rs. 64,28,937. Aggrieved, the assessee appealed to the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which rejected his contentions.…

Legal Issues

• 1. Whether section 56(2)(vii)(b) applies to rural agricultural land which is excluded from ‘capital asset’ under section 2(14)(iii).
• 2. Whether the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre distinguished between urban and rural agricultural land.
• 3. Whether the Assessing Officer appreciated the facts of the case in its entirety.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Mayur Kanubhai Shah vs ITO, Ward 19(2)(2), Mumbai

  Mumbai Bench 'E', Mumbai benchAY 2016-17Remanded

• Zahida Bano Mohammad Yusuf Shaikh v/s Income Tax Officer, Ward-41(4)(4)

• Ragini Bhadauria v. Income Tax Officer, Ward-49(1), New Delhi-110001

  Delhi Bench ‘SMC’, New Delhi benchAY 2017-18Allowed

• G.S.Procon Private Limited Vs ACIT, Circle-5(2), Kolkata

  Kolkata Bench benchAY 2015-2016Allowed

• Mr. Rajendra Shakharam Badgujar Vs. The ITO, Ward-5(3)(2) Vejalpur Ahmedabad

  Ahmedabad bench

• Naresh Kumar Morya Vs. Income Tax Officer

  Delhi Bench 'A', New Delhi benchAY 2017-18Allowed