SAPNA ANKIT JAIN,MUMBAI vs. WARD 20(3)(1), MUMBAI, MUMBAI

PDF · subscribers
ITA 6283/MUM/2025Status: DisposedITAT Mumbai25 November 2025AY 2018-19Bench: Shri Sandeep Gosain (Judicial Member), Shri Omkareshwar Chidara ( (Accountant Member)4 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that if an advance is paid by cheque in an earlier year and allotment is made in that year, the SRO rate of that concerned year should be considered for computation under Section 56(2)(x). As the difference was less than 5%, the addition made by the AO was deleted.

What were the facts?

The Assessing Officer (AO) made an addition of Rs. 8.44 lakh under Section 56(2)(x) of the Income Tax Act, representing the difference between the sale deed value and the State Registration Authority value. This addition was confirmed by the CIT(A).

What were the issues?

Whether the SRO rate of the year of advance payment and allotment should be considered for the purpose of Section 56(2)(x) when the difference between values is less than 5%.

Which sections of the Income-tax Act were involved?

Section 56(2)(x)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Mumbai “J(SMC

Before: Shri Sandeep Gosain (JM) & Shri Omkareshwar Chidara (AM)

For Appellant: Shri Aditya Rai
Pronounced: 27/11/2025

O R D E R Per Omkareshwar Chidara (AM) :-

In the above cited appeal, Ld. AO made an addition under section 56(2)(x) of the Income Tax Act which deals with difference between the value mentioned in sale deed and the value as per State Registration Authorities. Accordingly, an amount of Rs. 8.44 lakh was added by Ld. AO and the same was confirmed by Ld. CIT(A).

2.

Before the ITAT, the Ld. AR of the appellant has submitted that proviso to section 56(2)(x) of the Act is applicable if the appellant paid some advance by cheque in earlier year and allotment was made to appellant, then the cost mentioned in earlier year only should be taken. In this case, the amount was paid prior to 24.3.2017 and allotment letter was issued on 24.3.2017 and hence the cost as per SRO of A.Y. 2017-18 should be taken. In pursuance to this argument, copy of allotment letter and copy of Agreement for sale were filed before ITAT.

3.

The Ld. DR relied on the orders of lower authorities.

4.

Heard both sides. The proviso clearly says that if appellant pays part of amount by cheque and allotment is made in earlier year, then the SRO rate of concerned year should be taken into consideration for the purpose of computation of section 56(2)(x) of the Act. As the appellant has paid the advance and allotment was done in A.Y. 2017-18, the rate of that year should be adopted by Ld. AO and if the difference between these values is less than 5%, the same should be ignored. In this case, since the difference is less than 5%, the addition made by Ld. AO is deleted.

5.

The appeal of appellant is allowed. Order pronounced in the open Court on 27/11/2025.

More judgments on Section 56(2)(x)

All 565 judgments and leading authorities on Section 56(2)(x) →

Latest GST High Court judgments

Search GST case law →