2019 (8) TMI 1192 - ITAT KOLKATA

Addition u/s 50C - sale consideration received as a result of the transfer of a capital asset is less than the market value as per stamp duty valuation - third proviso to Section 50C inserted w.e.f 1-4-2019 is retrospective or prospective - HELD THAT:- Coordinate Bench of ITAT Mumbai, in the case of M/s John Flower ( India) Pvt. Ltd [2019 (8) TMI 1086 - ITAT BANGALORE] 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.

Accordingly, we hold that the insertion of third proviso (noted above) to Section 50C 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 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. In the assessee’s case under consideration, the stamp duty valuation is ₹ 3,27,01,950/- and sale consideration is ₹ 3,15,00,000/-. The difference of ₹ 12,01,950/- is not more than 5% of the sale consideration. That is, it is at 3.81% [12,01,950 / 3,15,00,000 x 100] of sale consideration, therefore, we delete the addition

Bogus loss incurred in share trading - HELD THAT:- Assessee’s case is covered by the judgment of Co-ordinate Bench of ITAT Kolkata in the case of Sanjib Kumar Patwari(HUF) [2019 (5) TMI 1670 - ITAT KOLKATA] . Revenue has failed to controvert the findings of the Coordinate Bench (supra) therefore, respectfully following the judgment of the Co-ordinate Bench of ITAT, Kolkata (supra), we deleted the addition .