Meena Arjun Narang Vs ACIT (ITAT Mumbai)
Allotment Date, Not Registration Date, Governs s.56(2)(x): ITAT Mumbai Deletes Stamp-Duty Differential Addition
ITAT Mumbai (SMC Bench) in Meena Arjun Narang vs ACIT (ITA No. 6651/Mum/2025, AY 2018-19, order dated 24.12.2025) has allowed the assessee’s appeal, holding that for the purpose of s.56(2)(x)(b), stamp duty value as on the date of allotment must be adopted where part consideration was paid through banking channels prior to registration.
The Assessee, a co-owner, was allotted a flat vide allotment letter dated 11.12.2010 and made part payments through bank. Due to tenant disputes and construction delays, registration occurred much later on 03.11.2017. The AO reopened the case and made an addition of ₹12.36 lakh being the difference between agreement value and stamp duty value as on the registration date; NFAC upheld the addition, rejecting the allotment letter as unregistered.
Reversing NFAC, ITAT held that:
- Allotment letter cons titutes an “agreement” for s.56(2)(x) where it records consideration and binding terms
- Proviso to s.56(2)(x) squarely applies since part consideration was paid via banking channels before registration
- Stamp duty value as on the allotment date must be considered, not the later registration date
- The view is squarely covered by consistent Mumbai ITAT precedents (Pinstripe Properties; Dharmesh R. Jhaveri; Mohini B.K. Ludhani; Manjulaben H. Jain; Sajjanraj Mehta)
Accordingly, the Tribunal directed deletion of the entire addition. (Delay of 231 days was also condoned on sufficient cause.)
FULL TEXT OF THE ORDER OF ITAT MUMBAI
