2025 (6) TMI 1720 - SCH - Income Tax

Addition u/s 56(2)(vi) - Agreement to sell - forfeiture of earnest money - Application of section 51 - as decided by HC 2013 (2) TMI 74 - DELHI HIGH COURT before a plea based on section 56(2)(vi) of the said Act can be taken a foundation has to be laid that the transaction was without any consideration. No such foundational plea had been taken before the Tribunal. Apart from this we find that the Tribunal has rightly noted that the provisions of section 51 of the said Act would come into play as it specifically covers this type of a transaction. Once the transaction has been held to be genuine there is no question of the transaction being without any consideration. HELD THAT - No good reason to interfere with the impugned order passed by the High Court of Delhi at New Delhi. The Civil Appeal is accordingly dismissed.

Summary

The Supreme Court, through Justices J. B. Pardiwala and R. Mahadevan, dismissed the Civil Appeal filed by the Revenue against the High Court of Delhi's order dated 17-01-2013 in ITA No.1263/2011. After hearing Senior Counsel Mr. Rupesh Kumar and reviewing the record, the Court found "no good reason to interfere with the impugned order." Consequently, the appeal was dismissed, and all pending applications were disposed of.