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2020 (3) TMI 1380 - AT - Income TaxAddition u/s 43CA - disallowances being difference between agreement value for sales and the stamp value for the registration - HELD THAT:- Upon careful consideration as regards the addition on account of flat No. 1902 is concerned, the assessee's plea that agreement was entered into in 2012 cannot be accepted as learned CIT(A) has rightly observed that assessee has chosen to declare the same in the present assessment year. Proviso which has been inserted in section 43CA(1) with effect from 1.4.2019 a cardinal principle of interpretation is to look at the mischief, the act, the amendment, the proviso is aimed to remove or take care of. In the present case find that proviso was inserted to grant relief where there is only a 5% variation in the agreement value and stamp value. In such circumstances the proviso granted relief in as much as the difference of 5% is to be ignored and the deeming provision of section 43-CA shall not be invoked. I find that this proviso is aimed at mitigating the hardship or the mischief which was caused to the taxpayer on the invocation of deeming provisions of section 43- CA where there is marginal variation upto 5% - this proviso shall take retrospective effect. Hence I hold that in cases where the variation is up to 5% no addition shall be made by the assessing officer by invoking the provisions of section 43-CA. Accordingly, the matter stands remitted to the file of assessing officer. The assessing officer shall restrict the disallowances only to those cases where the variation exceeds 105%. Needless, the assessee shall be granted adequate proportionate being heard. Appeal of assessee stands partly allowed.
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