10% Safe Harbour Under Section 56(2)(x) Applies Retrospectively: Mumbai ITAT

Advertisement Padmavati Developers Vs ITO (ITAT Mumbai) The Mumbai ITAT held that the 10% tolerance band introduced under Section 56(2)(x)(b)(B) by the Finance Act, 2020 is curative and retrospective in nature, and therefore applicable even for AY 2018-19. Accordingly, the Tribunal deleted the addition made on account of difference between purchase consideration and stamp duty valuation where the variation was only 7.44%. The assessee had purchased immovable property for ₹1.50 crore whereas the stamp duty authority adopted a value of ₹1.61 crore, resulting in a difference of ₹11.16 la...