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2021 (8) TMI 270 - AT - Income TaxIncome from other sources u/s 56 - purchase was lower than the ready reckoner rate - tolerance limit 5% or 10% - Assessee had purchased a residential flat for a consideration less than the stamp duty value of the property -assessee. Assessee being a layman agreed with the consideration amount without knowing the implications of provisions of sec 50C - HELD THAT:- We note that the difference between value declared and value as per stamp value authority is less than 10%. This is within the tolerance limit specified in section 50C. The authorities below have rejected it on the premise that the tolerance limit was introduced by the Finance Act, 2018; hence it is not applicable for the year under consideration. We note the plea that the amendment was intended to cure a hardship and hence retrospective has been duly accepted in the ITAT decision referred in the assessee’s submission above. Moreover, the speech of Hon'ble Finance Minister while introducing the provisions duly support this premise. Moreover, in such situation curative provision to remove hardship should be retrospective is duly supported by decision in the case of Allied Moters (P) Ltd. [1997 (3) TMI 9 - SUPREME COURT] as held that proviso which is inserted to remedy unintended consequences and to make the proviso workable, a proviso which supplies an obvious omission in the section and is require to be read into the section to give the section a reasonable interpretation, requires to be treated as retrospective in operation. Undoubtedly this amendment was done to obviate hardships arising out of minor variation in value of transaction qua 50C valuation. In this view of the matter assessee’s plea succeeds. Hence, we set aside the orders of the authorities below and decide the issue in favour of the assessee.
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