Arihant Associates Vs ACIT (ITAT Mumbai)
ITAT Mumbai deleted additions made under section 43CA of the Income Tax Act by considering the stamp duty value on the date of registration of agreement as prescribed under section 43CA(3) of the Income Tax Act.
Facts- The present appeal is preferred by the assessee on a solitary grievance of addition made under section 43CA (i.e. difference between stamp duty value and agreement value) of the Income Tax Act.
Conclusion- As per the provisions of section 43CA(1) of the Act, where the consideration received or accrued as a result of the transfer by an assessee of a land or building is less than the value adopted by the stamp duty authority, then the value so adopted shall be deemed to be the full value of the consideration received or accruing as a result of such transfer for the purpose of computing profits and gains from transfer of such asset. The provisions of section 43CA(3) further provide that where the date of agreement fixing the value of consideration and the date of registration of such transfer of asset are not the same, then stamp duty value as on the date of agreement shall be taken as the full value of the consideration for the purpose of computing profits and gains from transfer of such asset.
