TaxTMI 
TaxTMI 
2025 (12) TMI 1578
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....ple of Act and judicial pronouncement. 2. The applicant states that the addition of Rs. 18,95,000/- to the Income of the applicant u/s 56(2) (vii) (b) of the Income Tax Act, 1961 on account of consideration paid for the purchase of the flat No. 901 Building known as "Prathmesh Pearls" at bearing CTS No.433,433/1, Bhandup Village Road Bhandup West, Mumbai 400078 completely disregarding the actual date of allotment agreement Dated 29.09.2010 and the Cheque payment made pursuant to the same as a part purchase consideration for the purchase of the said flat and disregarding the Provisions of proviso to the section 56(2)(vii)(b)(ii) of the Act 3. On the Facts and Circumstances of the case, The DRP/ Ld. AO erred both on facts and in law in confirming the addition of Rs. 18,95,000/- disregarding the Proviso to Section 56(2)(vii) (b)(ii)of the Act, which stipulates that where the date of the agreement fixing the amount of consideration for the transfer/ purchase of immovable property (date of allotment 29.09.2010) and the date of registration (18.03.2016) are not the same, the stamp duty value as on the date of the agreement may be taken for the purposes of this sub-claus....
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....ed additional evidences in support of his claim for which remand report was called from the ld. AO. Copy of the remand report furnished by the ld. AO is reproduced in the order of ld. DRP. From the perusal of the same, it is noted from paragraph 5 that ld. AO had categorically mentioned that assessee submitted copy of HDFC bank statement and on its verification, he noted that assessee had made total payment of Rs. 7,98,000/- through cheque to the builder which is before the issuance of allotment letter dated 29.09.2010. As the rejoinder to the remand report, assessee furnished the following documents before the ld. DRP for its consideration: 1. Confirming letter issued by M/S Jaydeep Construction (Builder) 2. Allotment letter issued by M/S Jaydeep Construction (Builder) 3. Purchase deed 4. Payment Schedule 5. HDFC Bank Statement w.r.t payment Schedule. 5. Assessee contented that agreement for the said property was confirmed on 29.09.2010 for which an allotment letter was issued by the builder mentioning the consideration of Rs. 62,88,500/-. In the said allotment letter, payment schedule was also tabulated which is extracted below for ....
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....-. Thrust of the assessee in his contention is that actual date of allotment is an agreement which was executed between the builder and him by way of an allotment letter dated 29.09.2010, wherein identified flat was allotted and reserved for the assessee on mutually agreed terms, including payment terms, based on various stages of construction. This letter of allotment issued by the builder for the impugned immovable property is a contract between the builder and the assessee and thus, fulfills the conditions laid down in the provisos to Section 56(2)(vii)(b). For this, assessee referred to the specific content of the allotment letter placed in the paper book, whereby it is mentioned that builder has agreed to allot the specified flat in the name of the assessee which is subject to term and conditions laid down in the said allotment letter ("agreement") as well as, as per the terms of MCGM/ BMC Rules and Regulations and or other authorities. The relevant extract in this respect from the allotment letter is reproduced for ready reference: "As per your request we have reserved for you a Flat No.901. in B-wing on 9th Floor, in the building Known as Prathamesh Pearl CTS No. 43....
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....ejected the objections of the assessee and directed to make the proposed addition of Rs. 18,95,000/- u/s. 56(2)(vii)(b), since according to it, the only agreement in existence is the registered sale agreement dated 17.03.2016. 7. We have carefully perused the documentary evidences placed on record which include allotment letter, bank statements, evidencing the part payments made by the assessee at the time of booking and prior to the registered sale agreement executed in the year 2016. We have also carefully gone through the orders of the authorities below as well as provision of section 56(2)(x)/56(2)(vii)(b). The proviso to the said section in explicit terms mentions about the value which needs to be considered where an agreement is entered into by the assessee for an immovable property which fixes the amount of consideration and is registered subsequently at a later date. These provisos mitigate the hardship which may arise on the assessee on account of increase in the stamp duty value owing to passage of time, required for the construction of the immovable property or for such other similar reasons which leads to a time gap between the agreement entered into by the assessee ....