Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 1098 - AT - Income TaxAddition u/s 56 - difference between the circle rate and actual consideration received - Whether the learned CIT (A) as well as assessing officer was justified in not referring the property in question to the department valuation officer as demanded by the assessee and as per the provision of section 43CA read with section 50C? - HELD THAT:- Undoubtedly, the flat sold by M/s Techmen Buildwell (P) Ltd. for ₹ 55,16,000/- was less than the circle rate since the stamp duty was to be paid by the purchaser at ₹ 59,78,115/-. The difference between the circle rate and the actual sale consideration comes to ₹ 7.73% of the circle rate which is less than 10%. Mumbai bench of the Tribunal in the case of M/s John Flower (India) Pvt. Ltd. [2017 (1) TMI 1682 - ITAT MUMBAI] while considering an identical issue has deleted the addition made by the AO u/s 50C on the ground that such difference is less than 10% of the stamp duty valuation. Since the difference between circle rate and the actual sale consideration in the instant case is about 7.7% of the circle rate, which is less than 10% of the stamp duty valuation, therefore, respectfully following the decision of the Mumbai Bench of the Tribunal, hold that the ld.CIT(A) was not justified in sustaining the addition made by the AO. Accordingly, the order of the CIT(A) is set aside and the grounds raised by the assessee are allowed.
|