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2023 (11) TMI 34 - AT - Income TaxComputation of capital gain - FMV determination - difference of 10% between value adopted by department valuer and actual transaction value - addition u/s 50C - tolerance band for variations between stated sale consideration vis-à-vis stamp duty valuation - scope of Amendment made in scheme of section 50C(1) - HELD THAT:- Admittedly, assessee has sold a property at the transaction value of ₹ 130 lakhs. The valuation by the departmental valuer comes to ₹ 13,930,000/–. Therefore, the difference between the transaction value and the value of property as denied by the departmental valuation officer is ₹ 930,000. We find that the tolerance limit provided under section 50 C (1) was 5%, which was enhanced to 10% with effect from 1/4/2021, and therefore apparently for assessment year 2016 – 17 it was not available. It has been held that Amendment made in scheme of section 50C(1), by inserting third proviso thereto and by enhancing tolerance band for variations between stated sale consideration vis-à-vis stamp duty valuation from 5 per cent to 10 per cent are effective from date on which section 50C, itself was introduced, i.e. 1-4-2003 in [2021 (4) TMI 1160 - ITAT DELHI]. Therefore rate of 10% of tolerance limit is applicable with effect from 1/4/2003 itself, no addition could be made in the hence of the assessee. Accordingly, we direct delete the addition u/s 50C - Appeal of assessee allowed.
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