SAPNA ANKIT JAIN,MUMBAI vs. WARD 20(3)(1), MUMBAI, MUMBAI
Income Tax Appellate Tribunal, Mumbai “J(SMC
Before: Shri Sandeep Gosain (JM) & Shri Omkareshwar Chidara (AM) Sapna Ankit Jain 603/604, B Wing Anupam CHSL, Gas Lane Lalbaug, Mumbai-400 012. Vs. ITO Ward-20(3)(1) Piramal Chamber Lal Baugh, Parel Mumbai-400 012. PAN : AOIPJ2279L Appellant
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).
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.
The Ld. DR relied on the orders of lower authorities.
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.
The appeal of appellant is allowed. Order pronounced in the open Court on 27/11/2025. (SANDEEP GOSAIN) ACCOUNTANT MEMBER
Copy of the Order forwarded to :
The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file.
BY ORDER,
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