ABBAS Fakhruddin Vs ITO (ITAT Mumbai)
AO made addition of ₹67.56 lakh treating property purchase as unexplained investment u/s 69 / sec 56(2)(vii)(b)/(x) based on stamp duty value, as assessee had not filed return & registered value was higher than consideration (₹36 lakh).
Assessee’s case:
- Flat allotted in 2008 via allotment letter with total consideration ₹36 lakh
- Payments made between 2008-2014 through banking channels (as seen in installment chart on Pg 3)
- Registration happened later in 2017 – no fresh investment in year
ITAT held:
- Date of allotment = date of agreement for purposes of proviso to sec 56(2)(x)
- Stamp duty value should be considered as on allotment date (2008), not registration date
- No investment in relevant year – provisions of sec 68/69 not applicable
- Relied on Bombay HC in Vembu Vaidyanathan- allotment confers rights
Accordingly:
- Addition deleted
- AO directed to verify stamp value as on allotment date3
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal has been preferred by the Assessee against the order dated 03.10.2025, impugned herein, passed by National Faceless Appeal Centre (NFAC), Delhi/Ld. Commissioner of Income Tax (Appeals) [in short Ld. Commissioner] u/s 250 of the Income Tax Act, 1961, [in short ‘the Act’] for the A.Y. 2017-18.
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