S. 56 : Income from Other Sources-Stamp duty valuation-Difference between agreement date and registration date–Allotment letter treated as “agreement”–Part consideration paid through banking channel before agreement–Stamp duty valuation to be adopted as on date of allotment–Addition deleted. [S. 50C ,56(2)(vii)(b).]
Where the assessee purchased a flat for ₹1,10,00,000 and the AO made an addition of ₹59,87,000 under section 56(2)(vii)(b) by adopting the stamp duty valuation as on 30-03-2017, the CIT(A) upheld the addition holding that no evidence was furnished for adopting earlier valuation; however, before the Tribunal the assessee established that an allotment letter dated 29-11-2012 had been issued and part of the consideration was paid through banking channels in 2011–12, satisfying the statutory condition for applying the first proviso to section 56(2)(vii)(b). The Tribunal held that once an agreement (allotment letter) exists and consideration is paid through non-cash modes prior to the agreement date, the stamp duty value relevant to the year of agreement (F.Y. 2012-13) must be adopted. Since the registered valuer’s report contemporaneous to 2012-13 reflected the same consideration of ₹1,10,00,000, no difference subsisted, and the addition was unsustainable. The Tribunal deleted the addition and remanded the matter to the AO only for the limited purpose of recomputation applying valuation as on the agreement year, after providing opportunity of hearing. (ITA No. 6045/Mum/2025, Order dated 27-11-2025.) (AY .2017-18)
Awadhnarayan Bhagwanta Singh v. ITO (Mum)(Trib) www.itatonline.org
[Coram : Hon’ble Shri Anikesh Banerjee, JM and Hon’ble Smt. Renu Jauhri, AM]