Sandeep Kumar Poddar Vs ITO (ITAT Kolkata)
The ITAT Kolkata considered an assessee’s appeal against the order of the CIT(A), NFAC, Delhi dated 28.06.2022, arising from an assessment order dated 07.03.2021 passed under Section 143(3) read with Sections 143(3A) and 143(3B) of the Income-tax Act, 1961. The dispute concerned an addition under Section 56(2)(x) arising from the difference between the stamp duty value of an immovable property and its actual purchase consideration, and whether the 10% tolerance band introduced by the Finance Act, 2020 could be applied retrospectively as a clarificatory or curative amendment.
The assessee filed its return on 27.08.2018 declaring total income of Rs.82,60,280/-. The case was selected for limited scrutiny, including the issue of investment in immovable property. During the relevant year, the assessee purchased property for an actual transaction value of Rs.82,91,250/-, while its stamp duty value was Rs.87,83,700/-. The difference was Rs.4,92,450/-. The Assessing Officer treated this difference as income from other sources under Section 56(2)(x), considering that the applicable tolerance band was 5%. During assessment proceedings, the assessee relied on the Finance Bill, 2020 amendment increasing the safe harbour limit from 5% to 10% and contended that a difference below 10% should be ignored.
