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2020 (10) TMI 923 - AT - Income TaxAddition u/s 56 (2)(vii)(b) - difference in purchase consideration between sub-registrar value and purchase price - difference between fair market value of the property and actual consideration - whether the third proviso to section 50C(1) can be applied to section 56(2)(vii)(b) in the absence of such proviso in that section? - HELD THAT:- Parliament has introduced third proviso in section 50C(1) of the Act, as per which the difference in stamp duty valuation and actual consideration should be ignored, if it is less than 5%/10%. Even though the said provision has come into effect from 1.4.2019/1.4.2021, we notice that the Kolkata Bench of Tribunal has held it to be curative in nature in the case of Chandra Prakash Jhunjhunwala [2019 (8) TMI 1192 - ITAT KOLKATA]and accordingly held that the proviso shall apply since the date of insertion of sec.50C of the Act. Accordingly, the above said reasoning given by the Kolkata bench of ITAT also supports the contentions of the assessee. We find merit in the prayer of the assessee. We notice that the addition sustained by Ld CIT(A) works out to less than 10% of the actual consideration paid by the assessee. Accordingly, we modify the order passed by Ld. CIT(A) and direct the A.O. to ignore the difference between fair market value determined by CIT(A) and the actual consideration as the same is less than 10% of the actual consideration. - Decided in favour of assessee.
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