Awadhnarayan Bhagwanta Singh Vs ITO (ITAT Mumbai)
Payment Made Before Agreement Date – Stamp Duty Value Must Match Year of Agreement—ITAT Deletes Addition u/s 56(2)(vii)(b)- Property Booked in 2012, Taxed at 2017 Value—ITAT Corrects SDV Mismatch
Assessee purchased a property for Rs.1,10,00,000/-, while stamp duty valuation as on 30.03.2017 was Rs.1,69,87,000/-. AO, in limited scrutiny, invoked u/s 56(2)(vii)(b) & added the differential Rs.59,87,000/. Before CIT(A), Assessee produced allotment letter dated 29.11.2012 issued by M/s Shah Housecon Pvt Ltd, advance payment of Rs.5,00,000/- made on 18.08.2011 through banking channel, & supporting bank statements & documents. CIT(A) upheld the addition holding that no documentary evidence was furnished.
Before Tribunal, Assessee produced paper book showing that all evidences—agreement documents, receipts, bank entries, & registered valuer’s report—were placed before authorities. Tribunal examined the proviso to u/s 56(2)(vii)(b) which mandates adoption of stamp duty value as on date of agreement where part consideration is paid through banking channel before that date.
Tribunal noted that allotment was issued in F.Y. 2012-13 & payment was made much earlier through bank. Valuation report showed property value of Rs.1,10,00,000/- for that year, matching Assessee’s declared purchase value. Therefore, adoption of 2017 stamp duty valuation was incorrect & addition of Rs.59,87,000/- could not survive. Tribunal set aside the impugned order & directed AO to recompute assessment by adopting stamp duty value of F.Y. 2012-13, after granting due opportunity. Appeal was allowed for statistical purpose.
