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Informative

ITAT Rules S.56(2)(x) Inapplicable to Property Transaction Due to Execution of Agreement Before 01 April 2017

Update / Judgement Date

24 Oct 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Income TaxOther Legal Matters

The ITAT ruled that Section 56(2)(x) of the Income Tax Act, which deals with the taxation of gifts and property received without adequate consideration, does not apply to a property transaction where the agreement was executed before April 1, 2017. This decision provides relief to taxpayers involved in similar transactions, clarifying that the law cannot be applied retrospectively in such cases.