ITAT Mumbai deleted ₹26.98 lakh addition under Section 56(2)(x) as stamp duty valuation was within 10% of consideration for AY 2018-19.
Section 56(2)(x) Addition Deleted for Within 10% Stamp Duty Value
ITAT Mumbai deleted an addition of ₹26.98 lakh under Section 56(2)(x), holding that the transaction value in a property allotment was within 10% of the stamp duty valuation as of the allotment date, thus exempt from taxation under the proviso introduced via Finance Act 2018.
The AO had relied on later stamp duty valuations, but the Tribunal affirmed that the relevant date is the date of agreement or allotment, not registration. Since the declared value exceeded 90% of the ready reckoner rate on that date, no addition could be sustained.
This ruling provides clarity on timing and applicable valuation benchmarks under Section 56(2)(x). Practitioners must ensure valuation comparisons are date-specific and invoke the 10% tolerance where applicable to defend against such additions.
