Aaeshka Riddhi Realty Vs CIT(A)-NFAC-ITO (ITAT Mumbai)
The assessee, a firm, challenged the order dated 26/07/2024 passed under section 250 of the Income Tax Act, 1961 by the learned CIT(A), National Faceless Appeal Centre, Delhi, for assessment year 2016-17. The dispute concerned an addition of ₹7,37,505 under section 43CA of the Act, representing the difference between the sale consideration of an immovable property and its stamp duty value.
The assessee had filed its return on 07/10/2016 declaring total income of ₹96,74,010. During reassessment proceedings, it was noted that the property had a sale value of ₹1,87,02,500, whereas the stamp duty value was ₹1,94,40,006, resulting in a difference of ₹7,37,505. The Assessing Officer, by order dated 16/05/2023 under sections 147 read with 144B, treated the difference as taxable under section 43CA. The CIT(A) dismissed the appeal ex parte and confirmed the addition.
Before the Tribunal, the assessee contended that the difference was only 3.79% and therefore fell within the 5% tolerance limit introduced by the Finance Act, 2018. The assessee also contended that the amendment was applicable retrospectively. The assessee further challenged the ex parte order passed by the CIT(A), alleging that the notices were not effectively received or responded to.
