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TMI Blog2024 (10) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... h account payee cheque and part payments were made before 2nd September, 2010. Therefore, it is an incorrect interpretation by both the revenue authorities. This allotment letter is be equated to an agreement to sale. The agreement is not required to be a registered document. The only requirement in the law is that agreement should be followed by payments through banking channel, so that its veracity cannot be doubted. In the present case, the assessee has established the genuineness of the allotment letter by showing that payments were made through account payee cheques. Therefore, the valuation date for the purpose of any deemed gift is the date when first payment was made, in this case it happened around June, 2010. The ld. Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer has committed an error by ignoring this aspect. If this starts from June, 2010 for which the assessee has made payments through account payee cheque is being construed as an agreement, then additions under section 56(2)(vii)(b)(ii) will not survive. Accordingly, we allow this appeal of the assessee and delete the addition. Appeal of the assessee is allowed. - Shri Rajpal Yadav, Vice-President (KZ) And Shri Rakesh Mishra, Accountant Member For the Assessee : Smt. Saswati Mitra Dutta, Advocate and Shri Rajshree Dutta, Advocate For the Revenue : Shri L.N. Dash, JCIT ORDER PER RAJPAL YADAV, VICE-PRESIDENT (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontention, he filed (i) copy of receipt from Greenfield City Project LLP, (ii) letter of allotment by Greenfield City Project LLP dated 10.06.2010 and (iii) copy of typical floor plan purported to be allotment of flat to the assessee. The ld. Assessing Officer did not equate this allotment letter and payment of the instalment by the assessee through account payee cheque as an agreement contemplated in proviso appended to sub- Clause (2) of section 56(1) of the Income Tax Act. The ld. Assessing Officer made the addition of the difference to the total income of the assessee. 4. Dissatisfied with this addition, the assessee filed an application under section 154 of the Income Tax Act and emphasized that the letter given by the developer demons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y thousand rupees, the stamp duty value of such property; (ii) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consideration: Provided that where the date of the agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement may be taken for the purposes of this sub-clause (emphasis supplied). Provided further that the said proviso shall apply only in a case where the amount of consideration referred to therein, or a part thereof, has been paid by any mode other than cash on or before the date of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6,57,980 on 02.09.2010. This was paid through account payee cheque No.717352. It indicates that all the payments were made through account payee cheque and part payments were made before 2nd September, 2010. Therefore, it is an incorrect interpretation by both the revenue authorities. This allotment letter is be equated to an agreement to sale. The agreement is not required to be a registered document. The only requirement in the law is that agreement should be followed by payments through banking channel, so that its veracity cannot be doubted. In the present case, the assessee has established the genuineness of the allotment letter by showing that payments were made through account payee cheques. Therefore, the valuation date for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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