10% Section 56(2)(x) Tolerance Limit for Property Valuation Retrospective: ITAT Mumbai

NFAC Vs NRB Developers (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai has issued a significant ruling, affirming that the 10% tolerance limit stipulated under Section 56(2)(x) of the Income-tax Act, 1961, for assessing the difference between a property’s declared sale value and its stamp duty value, is applicable retrospectively. This decision, pronounced on February 25, 2025, came in response to cross-appeals filed by the National Faceless Appeal Centre (NFAC) and NRB Developers for the assessment year 2018-19. The Tribunal’s order effectively reduces the addition made ...