Grace Suburban Development Venture Vs ITO (ITAT Mumbai)
Addition u/s 43CA on difference in sale consideration & stamp duty valuation cannot be sustained without DVO reference when specifically requested- Mumbai ITAT
In this appeal, Assessee, a builder & developer, challenged the order passed by CIT(A). The dispute arose from addition of Rs. 4,97,378/- made by AO u/s 43CA on account of difference between sale consideration shown in the agreement & the value adopted by Stamp Valuation Authority in respect of a flat.
Assessee contended that the flat was agreed to be sold in May 2014 for a lump sum consideration of Rs. 38,50,000/- & the registration of the agreement took place only in September 2016, at which time the Stamp Valuation Authority valued the flat at Rs. 44,47,378/-. Assessee argued that the addition was unjustified because AO refused to refer the matter to DVO despite a specific request & CIT(A) also dismissed the plea without appreciating the allotment letter dated 15.05.2014, the bank statement of the purchaser, & the ledger account. The grievance of denial of proper opportunity & even rejection of video-conferencing request was also raised.
Dept contended that addition was rightly made since the difference in valuation fell within the mischief of section 43CA.
