Amit Shrivastva Vs Assessment Unit (ITAT Kolkata)
In the case of Amit Shrivastava vs. Assessment Unit (ITAT Kolkata), the tribunal dealt with an addition of ₹19.6 lakh under Section 56(2)(x)(b) of the Income Tax Act for the Assessment Year 2018-19. The issue arose due to a discrepancy between the actual purchase price of an immovable property and its stamp duty value. The Assessing Officer added the differential amount to the income, citing the 5% tolerance limit applicable for that year. However, the assessee contested the addition, arguing for the retrospective application of the enhanced 10% safe harbour limit introduced by the Finance Act, 2020, claiming it was curative in nature.
The ITAT Kolkata examined precedents, including the cases of Joseph Mudaliar vs. DCIT and Nisha Gupta vs. ITO, which established that the 10% safe harbour limit should apply retrospectively as a beneficial and curative provision. The tribunal found the differential between the purchase price and stamp duty value within the 10% range and ruled that the addition was unsustainable. Respectfully following earlier tribunal decisions, the ITAT deleted the addition and allowed the appeal, emphasizing the consistency of tax treatment for buyers and sellers under similar provisions of the Act.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
