No Income Tax Payable on New Flat Received in Exchange for Old One: ITAT deletes Addition u/s 56(2)(x)

The ITAT ruled that no income tax is payable on a new flat received in exchange for an old one, deleting the addition made under Section 56(2)(x) of the Income Tax Act. The tribunal held that the transaction constituted an exchange and not a transfer subject to the provisions of Section 56(2)(x), which deals with the taxation of certain properties received without consideration or for inadequate consideration. The ITAT reasoned that the exchange of properties does not result in any monetary benefit or income in the hands of the assessee that would be taxable under the said section. This decision provides relief to taxpayers involved in property exchange transactions.