Big Relief for Homebuyer: Mumbai ITAT Rejects I-T Department’s Stamp Duty Valuation

The Mumbai bench of the income tax appellate tribunal (ITAT) has set aside an addition of ₹59.87 lakh made by the income tax (I-T) department on the basis of stamp duty valuation, holding that the valuation prevailing on the date of the property’s allotment must be adopted when part consideration has been paid through banking channels before the agreement date. In an order last month, the ITAT bench of Anikesh Banerjee (judicial member) and Renu Jauhri (accountant member) says, "In the present case, the assessee entered into an agreement, and the allotment letter was duly issued by the promoter. The payment was made through banking channels. Therefore, the stamp duty valuation of the property should be taken as on the date of allotment, i.e., FY12-13. Upon perusal of the valuation re