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2020 (1) TMI 853 - AT - Income TaxAddition u/s 43CA - transfer of business assets / property - stamp value - applicability of tolerance limit of 5% - difference in consideration received in respect of agreement to sale executed during the year and brought to tax as per revenue recognised on percentage completion method - as per assessee difference between the value adopted by the stamp valuation authority and the actual sale consideration received by the assessee on the transfer of the aforesaid property works out to 9.56% i.e less than 15%, therefore, no addition of the impugned difference HELD THAT:- As long as the difference between the value adopted by the stamp valuation authority and the actual consideration received or accrued to the assessee on the transfer of the asset (other than a capital asset) is not in excess of five percent, then such difference is to be ignored and the profits and gains on transfer of the asset has to be worked out on the basis of the actual consideration received or accruing to the assessee. In case, the aforesaid claim of the assessee that if the difference between the value adopted by the stamp valuation authority and the actual consideration received or accruing as a result of transfer of the asset (other than a capital asset) does not exceed 15%, then no addition would be called for u/s 43CA is accepted, then we are afraid that the same would render the aforesaid ‘proviso’ to Sec. 43CA(1) as had specifically been made available on the statute vide the Finance Act, 2018 w.e.f A.Y. 2019-20 would be rendered as meaningless. A s a tolerance limit of 5% between the value adopted by the stamp valuation authority and the actual consideration received or accruing as a result of transfer of the asset (other than a capital asset), had been made available on the statute only vide the Finance Act, 2018 w.e.f A.Y. 01.04.2019, therefore, it would be absolutely incorrect to infer that prior to the aforesaid amendment a tolerance limit of 15% was already available and/or inbuilt in the said statutory provision. In our considered view, if that would have been so, then there would have been no requirement for incorporation of the ‘proviso’ to Sec. 43CA (1) of the Act. On the basis of our aforesaid observations, we are of the considered view, that the contention of the ld. A.R that as the difference of ₹ 4,48,350/- between the value adopted by the stamp valuation authority and the actual consideration received as a result of transfer of the aforesaid property works out to 9.56%, i.e less than 15%, therefore, the same was to be ignored and no addition was called for in the hands of the assessee, does not merit acceptance and is resultantly rejected. We thus in terms of our aforesaid observations, finding no infirmity in sustaining of the addition by the CIT(A), uphold his order. - Decided against assessee.
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