9911796707
TMI Blog2021 (9) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... ter referred to as 'the Act']. 3. Sh. Nishant K. Ruparel appearing on behalf of the assessee submitted that the assessee had purchased plot of land during the period relevant to A.Y under appeal vide registered deed dated 25.03.2013 for a total consideration of Rs. 2,60,50,000/-. During the assessment proceedings, the Assessing Officer (AO) determined the market value of property as per stamp duty rate at Rs. 2,75,67,800/-. The AO made addition of the difference between stamp duty value and total consideration declared by the assessee i.e. Rs. 15,17,800/-. The ld. Authorised Representative (AR) submitted that variation in the value of consideration as declared in purchase deed and stamp duty value is merely 5.82%. The 3rd proviso t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh it is stated to be prospective, but it relates back to the date when the statutory provision of section 50C was made effective i.e. 01.04.2003. Even, the subsequent amendment to the aforesaid proviso by the Finance Act, 2020 enhancing tolerance band from 5% to 10% would be effective w.e.f. 01.04.2003. The relevant findings of the Tribunal on the issue are extracted as under: "7. ...The insertion of the third proviso to Section 50C(1) provides for this tolerance band with respect to a certain degree of variations between the stamp duty valuation and the stated consideration of an immovable property. In other words, as long as the variations are within the permissible limits, the anti-avoidance provisions of Section 50C do not come into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the assessee, and subject the assessee to practically prove his being truthful in stating the sale consideration. Clearly, therefore, this insertion of the third proviso to Section 50C(1) is in the nature of a remedial measure to address a bonafide situation where there is little justification for invoking an anti-avoidance provision. Similarly, so far as enhancement of tolerance band to 10% by the Finance Act 2020, is concerned, as noted in the CBDT circular itself, it was done in response to the representations of the stakeholders for enhancement in the tolerance band. Once the Government acknowledged this genuine hardship to the taxpayer and addressed the issue by a suitable amendment in law, the next question was what should be a fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relate back to the date when the related statutory provision of Section 50C, i.e. 1st April 2003. In plain words, what is means is that even if the valuation of a property, for the purpose of stamp duty valuation, is 10% more than the stated sale consideration, the stated sale consideration will be accepted at the face value and the anti-avoidance provisions under section 50C will not be invoked. 8. Once legislature very graciously accepts, by introducing the legal amendments in question, that there were lacunas in the provisions of section 50C in the sense that even in the cases of genuine variations between the stated consideration and the stamp duty valuation, anti-avoidance provisions under section 50C could be pressed into service, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
