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2023 (11) TMI 848 - AT - Income TaxAddition u/s u/s 43CA - Difference in the sale value and stamp duty value - Addition made without awaiting the report of DVO - scope of proviso to subsection (1) of section 43CA - tolerance limit band - HELD THAT:- We note that the Finance Act 2018 has inserted a proviso to subsection (1) of section 43CA which provides 5% tolerance limit if there is variation between declared sale consideration vis-a-vis stamp duty value, and in such an event then, no addition is warranted. Similar proviso was inserted by the Finance Act 2018 to sub-section (1) of section 50C of the Act. The said tolerance limit band was enhanced from 5% to 10% by the Finance Act 2020 w.e.f. 01/4/2021. As decided in Pune Tribunal in the case of Radhika Sales Corporation [2018 (11) TMI 1788 - ITAT PUNE] wherein the Tribunal held that if the difference in the value declared by the assessee and the value determined by the DVO is less than 10%, then no addition may be made. As taking into consideration the Pune Tribunal’s decision in the case of Radhika Sales Corporation [2018 (11) TMI 1788 - ITAT PUNE] and case of Maria Fernandes Cheryle [2021 (1) TMI 620 - ITAT MUMBAI] we are of the opinion that the proviso explaining the tolerance limit has to be read retrospectively. Therefore, in the present case in hand as noted difference between the declared sale value i.e. Rs. 9,50,00,000/- and the value decided by the DVO is Rs. 9,91,25,000/- which difference being less than 10% [i.e, 4.35%], no addition is warranted. However, we note that the AO has not passed the consequential rectification order after the DVO had submitted his report dated 21.02.2019. Therefore, we deem it fit to set aside the impugned order and restore the matter back to the file of AO for limited purpose of verification of the facts stated and if assessee’s claim as discussed is found to be correct, then, no addition is warranted. Appeal of the assessee is allowed for statistical purposes.
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