Case Law Details
Dulari Devi Hetamsaria (L/H of Shyam Sundar Hetamsaria) Vs ACIT (ITAT Kolkata)
ITAT Mumbai, in the case of M/s John Flower ( India) Pvt. Ltd, in ITA No.7545/Mum/2014, for A.Y. 2010-11, order dated 25.01.2017 held that if the difference between the valuation adopted by the Stamp Valuation Authority and declared by the assessee is less than 10%, the same should be ignored and no adjustments shall be made. It eas further held that insertion of third proviso (noted above) to Section 50C of the Act is declaratory and curative in nature. That is, the third proviso to Section 50C of the Act relates to computation of value of property as explained by us above, hence it is not a substantive amendment, it is only a procedural amendment therefore the Coordinate Benches of the ITAT used to ignore the variation up to 10%, therefore, the said amendment should be retrospective. Quite clearly therefore, even when the statute does not specifically state so, such amendments, in the light of the detailed discussions above, can only be treated as retrospective and effective from the date related statutory provisions was introduced. Viewed thus, the third proviso to Section 50C should be treated as curative in nature and with retrospective effect from 1st April 2003, i.e. the date effective from which Section 50C was introduced.
We note that valuation officer valued the building (asset) at Rs. 1,76,55,900/- whereas assessee had shown in her books of accounts at Rs. 1,66,52,805/- the difference of these two figures is at Rs. 10,03,095/- (1,76,55,900 – 1,66,52,805). The said difference of Rs. 10,03,095/- is less than 10% of the valuation shown by the assessee, that is, at Rs. 16,65,280 (10% of Rs. 2,66,52,805/-). The said variation or difference may arise because of various factors and therefore co-ordination bench in the case of Chandra Prakash Jhunjhunwala (supra) took the view that such minor difference should be ignored and no addition should be made on account of such minor variations. We note that the variation in valuation shown by DVO and the valuation made by the assessee does not exceed 10% hence relying on the judgment of Co-ordinate Bench (supra), on the identical issue, as noted above, we delete the addition of Rs. 10,03,035/-.
It is to be noted that Finance Act, 2018, w.e.f. 01.04.2019 provided that no adjustments shall be made in a case where the variation between stamp duty value and the sale consideration is not more than 5% of the sale consideration.
FULL TEXT OF THE ITAT JUDGEMENT
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