Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 470 - AT - Income TaxAddition u/s 43CA - Claim for deduction of the stamp duty and registration charges by the assessee company - whether allowable as a deduction within the meaning of Section 37(1)? - CIT-A deleted the addition - HELD THAT:- We are of a strong conviction that the A.O had grossly erred in law and facts of the case in declining the assessee’s claim for deduction of stamp duty and registration expenses, which being in the nature of an expenditure having been incurred wholly and exclusively for the purpose of its business were clearly allowable as a deduction within the meaning of Section 37(1). We concur with the view taken by the CIT(Appeals) that the A.O misconceiving the scope and gamut of the provisions of Section 43CA had wrongly applied the same to the case of the present assessee before us AS the assessee had sold the properties/units at the market value determined by the Stamp Valuation Authority and had received the sale consideration as mentioned in the registered sale deed, therefore, the provisions of Section 43CA of the Act by no means could have been invoked in its case. Also, as the A.O had failed to point out a single instance wherein the sale consideration received on the sale of the properties/units by the assessee was lower than the value adopted or assessed or assessable by any authority of the state government for the purpose of payment of stamp duty in respect of transfer of the same, therefore, there was no justification for him to have triggered the provisions of Section 43CA of the Act. Alternatively, we are also in agreement with the CIT(Appeals) that even otherwise, now when the valuation towards actual sale consideration and the value adopted for stamp duty in the present case varies between 5% to 7%, i.e., within the tolerance limit of upto 10%, therefore, pursuant to the amendment made available on the statute vide Finance Act, 2019 that is applicable w.e.f. A.Y.2014- 15, no adverse inferences could have been drawn u/s.43CA - We, thus, in terms of our aforesaid observations finding no infirmity in the view taken by the CIT(Appeals) uphold his order. Decided against revenue.
|