ACIT Vs Ashiana Housing Limited (ITAT Kolkata)
ITAT Kolkata held that amendment to section 43CA of the Income Tax Act vide the Finance Act, 2020 via which tolerance band for deviation between actual sale price and stamp duty valuation increased from 5% to 10% has retrospective application.
Facts- AO observed that there were 29 units sold whose aggregate value adopted or assessable as per stamp duty authorities amounted to Rs. 7,36,67,037/-. This was against an aggregate consideration received of Rs. 6,94,66,311/-. The differential value amounting to Rs. 42,00,726/- was added back u/s 43CA of the Act.
CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that this ground of the Revenue is dismissed and the claim of the appellant is allowed on this issue in principle in as much as the 10% tolerance band has to be allowed. However, the ld. AO is directed to verify the quantum of difference between actual sale price and the stamp duty valuation of the properties in question and allow relief in all cases which fall under the tolerance band of 10% as mentioned in the first and second proviso to Section 43CA of the Act.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
