Maya Real Estate Pvt. Ltd. Vs DCIT (ITAT Nagpur)
ITAT Nagpur held that addition under section 43CA of the Income Tax Act unwarranted since difference between actual sale price and valuation as per DVO is within tolerance band of 10%. Accordingly, entire addition is directed to be deleted.
Facts- The case of the assessee was re-opened. AO examined the impounded documents and found that as per the sale deed, value of the immovable property adopted by the stamp duty authority is Rs. 7.20 crore whereas the sale consideration paid by the assessee is only Rs. 3.50 crore, and thus there was a difference of Rs. 3.70 crore between the market value of the property adopted by Stamp Duty Authority and the actual sale consideration attracted the provision of section 43CA of the Act. Thus, AO completed the assessment and has made the addition of 57,68,020, u/s. 43CA of the Act.
CIT(A) confirmed the order passed by AO. Being aggrieved, the present appeal is filed.
Conclusion- In view of the valuation as per DVO being lower than the stamp duty valuation, the comparison has to be made between actual sale price and the valuation as per DVO. The difference is r 57,68,020. Such difference is 6.99% of the actual sale price. The difference within tolerance band of 10% and the application of such band will relate from 01/04/2014.
