Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 1184 - AT - Income TaxAddition u/s 43CA - Additions made without reference made to valuation officer (DVO) u/s 50C(2) / 50A - difference between the sale value recorded in books and stamp duty value - whether the A.O ought to have acceded to the request of the assessee to refer the dispute in respect of valuation of five (5) flats to the DVO in order to ascertain the fair market value of the property on the date of sale - assessee pleaded before the A.O that invoking blindly the provisions u/s 43CA and making additions based on the deeming provision would cause hardship to the assessee in genuine transfer of flats - HELD THAT:- As relying on SUNIL KUMAR AGARWAL [2014 (6) TMI 13 - CALCUTTA HIGH COURT] we set aside the order of the Ld. CIT(A) and remand the matter back to the AO with a direction to refer the valuation of flats to DVO for determination of the fair market value as on the date of sale of the property after giving opportunity to the assessee and thereafter to adopt the consideration of five (5) flats in question in accordance to law. Deduction u/s 80IB(10) - whether deduction be allowed on the entire income including any income (if any) determined u/s 43CA - HELD THAT:- We find force in the submission of the Ld. AR that if the income/profits from the sale of flats, in question, falls in the eligibility project for claiming deduction 80IB(10) of the Act, then even if there is any enhancement in the income of the assessee by virtue of valuation made by the DVO, then the A.O after examination of this fact should give the benefit of the deduction under Chapter VI-A on the enhanced amount if any, in accordance to law. Taking into consideration the Tribunal’s decision in the case of Radhika Sales Corporation [2018 (11) TMI 1788 - ITAT PUNE] we are of the opinion that the proviso explaining the tolerance limit has to be read retrospectively, therefore, if the difference between the declared value by the assessee and the value decided by the DVO is less than 10%, no addition is warranted. With the aforesaid observations, the issue raised by the assessee is disposed off and the A.O is directed to assess the income of the assessee as per the directions given.
|