2023 (3) TMI 666 - AT - Income Tax

Income from other sources u/s. 56(2)(x) - difference of stamp duty value and the actual consideration - tolerance band limit from 5% to 10% under section 56(2)(x) to be treated as clarificatory/curative - Assessee argued amendment by Finance Act, 2020 to section 56(2)(x) wherein the safe harbour limit (tolerance band) has been increased from 5% to 10% and as such if the difference between valuation for stamp duty and the actual consideration is 10% or less, the same shall be ignored - HELD THAT:- Considering the submissions made by the assessee and the undisputed facts relating to quantum of difference and by placing reliance on the observations and finding of the Coordinate Bench of ITAT, Mumbai in the case of Maria Fernandes Cheryl [2021 (1) TMI 620 - ITAT MUMBAI] followed in the case of Karb Associates Pvt. Ltd. [2021 (8) TMI 1184 - ITAT KOLKATA] we unhesitatingly hold that the amendment of increasing the tolerance band from 5% to 10% under section 56(2)(x) brought in by Finance Act, 2020 had to be read retrospectively being clarificatory/curative in nature and, therefore, since the difference between the valuation for stamp duty and the actual consideration is less than 10%, which in the present case is 5.93%, no addition is called for. Accordingly, grounds taken by the assessee in this respect are allowed.