Pramod Salvi Vs ITO (ITAT Mumbai)
Allotment Letter Treated as Agreement to Sell – Stamp Value on Booking Date to Apply u/s 56(2)(x) – Addition Set Aside – ITAT Mumbai
AO made addition of ₹45.03 lakh u/s 56(2)(x) on purchase of two flats by adopting stamp duty value on date of registration in 2018. Assessee contended that flats were booked in 2007 and allotment letters issued in 2010 constituted agreement to sell, with substantial payments made through banking channel prior to registration. CIT(A) confirmed addition.
ITAT held that allotment letter can be treated as agreement to sell and where part consideration is paid through non-cash modes before agreement date, proviso to Sec 56(2)(x) applies. Tribunal observed that stamp duty value as on allotment date should be considered instead of registration date value. Addition made by AO was set aside and matter restored for limited verification of stamp value on allotment date. Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The assessee has filed the present appeal against the impugned order dated 29.10.2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2018-19.
