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2019 (9) TMI 52 - AT - Income TaxAddition invoking the provisions of section 56(2)(vii)(b) - income from other sources - difference amount between the SRO value and the actual consideration paid - dispute between the parties settled through arbitration - HELD THAT:- There is no dispute that there was agreement and both the parties have agreed. The assessee has made the payments as per the agreements which were acknowledged by the recipient, the cheque payment also was made in the bank account to clear the debt of the vendor which was evidenced in the plaintiff copy filed before the District Judge. There is no reason to disbelieve the submissions made by the assessee in the civil suit filed before the Hon’ble District Judge and the case of the assessee is squarely covered as exception as per proviso to section 56(2)(vii)(b) of the act and accordingly, we, hold that there is no case for invoking the provisions of section 56(2)(vii)(b) to tax the difference amount between the SRO value and the actual consideration paid as income from other sources. - Decided in favour of assessee.
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