Stamp duty value under section 56(2)(x) follows allotment date where allotment letter operates as an agreement to sell.

For section 56(2)(x)(b), where an allotment letter records the terms of transfer of immovable property, identifies the unit, and is acted upon by both sides, it may be treated as an agreement to sell. If the consideration was fixed under that allotment and paid through banking channels before that date, the first and second provisos apply, so stamp duty value is taken with reference to the allotment date rather than the later registration date. The anti-abuse purpose of section 56(2)(x) does not displace this statutory exception.

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Issues: Whether, for the purpose of section 56(2)(x)(b) of the Income-tax Act, 1961, the stamp duty value was required to be taken as on the date of registration or the date of allotment letter, and whether the allotment letter could be treated as an agreement to sell so as to attract the first and second provisos to section 56(2)(x)(b).

Analysis: The assessee had booked the flat and paid the entire consideration by cheques before the allotment letter. The allotment letter and the supplemental allotment letter recorded the terms of the transaction, identified the unit, and were acted upon by both sides. The registered sale agreement later reflected the same transaction, apart from changes necessitated by regulatory amendments. On this footing, the allotment letter was treated as an agreement fixing the consideration for transfer of immovable property. Since the consideration had already been paid through banking channels before the allotment, the second proviso stood satisfied. The first proviso therefore required the stamp duty value to be taken with reference to the date of allotment and not the date of registration. The anti-abuse object of section 56(2)(x) did not justify ignoring the statutory exception.

Conclusion: The stamp duty value had to be taken as on the date of allotment letter, and the addition made by adopting the registration-date value was not sustainable. The issue was decided partly in favour of the assessee, with the matter remitted for limited verification on the revised basis.

Ratio Decidendi: Where the consideration for an immovable property has been fixed by an allotment letter treated as an agreement to sell, and the consideration or its part has been paid by banking channels before that date, the first and second provisos to section 56(2)(x)(b) require the stamp duty value to be taken as on the date of the allotment or agreement, not the registration date.

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