Anand Radhesham Vs Assessing Officer (ITAT Mumbai)
Allotment Letter = Agreement-ITAT Grants 56(2)(x) Relief, Limits Addition to 50% Share
The key issue before the ITAT was whether addition u/s 56(2)(x) (₹1.31 crore) based on stamp duty value at registration date was justified, where the property was booked much earlier.
The Tribunal ruled in favour of the assessee with important findings:
On applicability of proviso to Section 56(2)(x):
- The assessee had received an allotment letter dated 08.05.2013 fixing consideration and payment schedule
- Substantial payments were made through banking channels
- ITAT held that:
- Allotment letter containing complete terms = “agreement”
- No need for a formally registered agreement
Accordingly:
- Stamp duty value as on allotment date (2013) must be considered, not registration date
- Matter restored to AO to recompute on this basis
On joint ownership:
- Property was held 50:50 with wife
- AO wrongly taxed entire addition in assessee’s hands
ITAT directed:
- Addition should be restricted to assessee’s share only (50%) after verification
Result:
- Appeal allowed with directions for recomputation
Key takeaway:
- Allotment letter can qualify as agreement for 56(2)(x) relief
- Agreement date stamp value prevails if payments are through banking channels
- Addition must match ownership share-no blanket taxation
A strong ruling reinforcing substance over form in property taxation.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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