TaxTMI 
TaxTMI 
2024 (9) TMI 955
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....e and his wife Ms. Nina Sanjiv Sawant and daughter Ms. Sanika Sawant. The Assessee, in order to establish his claim of exemption, furnished an allotment letter dated 29.01.2011 issued by M/s. Spark Builders and Infra Project Ltd. wherein the total consideration amount of Rs. 1,75,00,000/- has been fixed and receipt of Rs. 10,00,000/- as advance has also been shown as paid as booking advance through cheque No.378482 dated 29.1.2011 drawn on Oriental Bank of Commerce. 3. The Assessing Officer (AO), though considered the claim of the Assessee, however, not found the same as acceptable and ultimately vide Assessment Order dated 13-09-2022 added the amount of Rs. Rs. 33,76,444/- being assessee's share i.e. one third of Rs. 1,01,29,333/- qua difference between the stamp duty value of the property purchased at Rs. 2,76,29,333/- and the consideration of Rs. 1,75,00,000/- paid, from other sources. 4. The Assessee, being aggrieved, challenged the said addition before the Ld. Commissioner, who ultimately affirmed the aforesaid addition by dismissing the appeal of the assessee. 5. The Assessee being aggrieved in appeal before us. 6. Having heard the parties and giving thoughtful considerat....
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....een debited from the account of the assessee and credited in the account of M/s. Spark Builders and Infra Project Ltd. It is the mandate of first proviso to section 56(2)(x) of the Act, that where the date of agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, then the stamp duty value on the date of agreement may be taken for the purpose of sub-clause and therefore agreement fixing the total consideration amount vide allotment letter dated 22.12.2014 coupled with copy of bank statement reflecting the debit of advance payment of Rs. 10,00,000/- on 24.12.2014, acknowledgment of receipt of advance of Rs. 10,00,000/- dated 26.12.2014 and sale deed dated 06.11.2019 executed in pursuance to the Allotment letter, strengthen the case of the Assessee qua consideration of stamp duty value, as on the date of allotment letter or fixing the sale price. 6.2 Issue with regard to the treatment of allotment letter as "Agreement fixing the sale price" has been considered by various courts including by the Hon'ble jurisdictional High Court in the case of in the case of PCIT-3 Vs. Vembo Vaidyanathan (2019) 261 taxman 376 ....
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.... the rights conferred by the "allotment letter", determined as under: "13. On careful reading of the Circular issued by the Board, para 2 thereof describes the nature of right that an allottee acquires on allotment of flat under Self-Financing Scheme. According to it, the allottee gets title to the property on the issuance of an allotment letter and the payment of installments is only a consequential action upon which the delivery of possession flows. Admittedly, the flat was allotted to the appellant on 07.06.1986, vide letter conveyed to the Assessee on 30.06.1986. The Assessee paid the first installment on 04.07.1986, thereby conferring a right upon the appellant to hold a flat, which was later identified and possession delivered on a later date. The mere fact that possession was delivered later, does not detract from the fact that the allottee was conferred a right to hold property on issuance of an allotment letter. The payment of balance installments, identification of a particular flat and delivery of possession are consequential acts, that relate back to and arise from the rights conferred by the allotment letter. In view of what has been recorded hereinabove, we have n....
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.... the building Desai Harmony in which the property of the appellant is situated. Further, the assessing officer has wrongly held that the appellant is the 100% shareholder whereas all the documents clearly mention that the appellant is co-owner alongwith her parents Mr. Sanjiv Atmaram Sawant and Mrs. Neena Sanjiv Sawant. This clearly implies that the share of the appellant is 1/3rd only in the said property. 5.3.14 It is further noted that the first and second proviso of section 56(2)(x) are clearly attracted in the case of the appellant as the allotment letter dated 22.12.2014 issued by M/s Spark Builders and Infra Projects Pvt Ltd clearly spell out that the total sale consideration of unit Flat No.1802, in Desai Harmony, GD Ambedkar Marg. Mumbai shall be Rs. 1,75,00,000/- against which an amount of Rs. 10,00,000/- has been paid as part consideration vide Corporation Bank bearing Cheque No.856019. Hence, the date of agreement fixing the amount of consideration for transfer of immovable property as per first proviso of section 56(2)(x) in this case is held to be 22.12.2014 and the date of registration is 06.11.2019. Since, the part amount of consideration i.e. Rs. 10,00,000/- has ....