Agreement-date stamp-duty value governs property taxation when part consideration is paid through prescribed banking modes before agreement.

For computing deemed income from property received for inadequate consideration, the first proviso to section 56(2)(x) permits use of the stamp-duty value on the agreement date rather than the registration date where the dates differ. The further proviso applies when whole or part of the consideration is paid by the prescribed banking mode on or before the agreement date. Where allotment was finalised and part consideration was paid by account-payee cheque on that date, the applicable circle rate was that prevailing in the relevant financial year of allotment. As the resulting difference was within the permissible tolerance limit, no addition was warranted.

---

---

Issues: Whether, for computing the addition under section 56(2)(x), the stamp-duty value applicable on the allotment/agreement date or that applicable on the registration date must be adopted where part consideration was paid through an account-payee cheque before the agreement.

Analysis: The first proviso permits adoption of the stamp-duty value on the date of the agreement fixing consideration where that date differs from the registration date. The further proviso applies where consideration, or part thereof, was paid through the prescribed banking mode on or before the agreement date. The allotment date and payment through account-payee cheque were undisputed. Accordingly, the circle rate for financial year 2016-17, when allotment was finalised, governed the computation. On that basis, the variation between the agreed consideration and stamp-duty value was within the 5% tolerance limit.

Conclusion: The stamp-duty value as on the allotment/agreement date was required to be adopted; no addition under section 56(2)(x) was warranted. The issue was decided in favour of the assessee.

---