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TMI Blog2024 (6) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... e challenging the order dated 01.08.2023 passed by the learned CIT (A), which in turn arises out of the order dated 05.11.2018, passed by the Assessing Officer in respect of A.Y. 2016-17. 3. The appellant - assessee is engaged in the business of property management. The appellant e-filed his Return of Income (RoI) on 05.08.2016 declaring a total income of Rs 7,61,85,600/- The case was selected for scrutiny under CASS. On the basis of the information available it was found that the appellant had sold immovable property located at Vikhroli, Mumbai, for a consideration of Rs 90 crores of which the valuation as per ready reckoner rates was Rs.91,05,55,000/-. In such circumstances the learned Assessing Officer by invoking the provisions of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less than 5% and the benefit of the proviso needs to be extended to the appellant. 7. The learned CIT-DR has submitted that the proviso has been introduced subsequent to the assessment year to which the present appeal pertains to and the CIT (A) has rightly found that the benefit of the proviso cannot be given in respect of A.Y. 2016-17. 8. We have considered the rival circumstances and the submissions made. As noticed earlier the subject property has been said to be sold for a consideration of Rs.90 crores, wherein the ready reckoner price is shown to be Rs. 91,05,55,000/-. Thus, the difference is to the tune of Rs. 1,05,55,000 which is less than 5% of the consideration received. 9. Section 50C which is relevant for the purpose and whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e pertaining to A.Y. 2011-12 and the difference between the sale consideration and the value adopted for the purpose of stamp duty therein was 6.55% which prompted the Assessing Office to make an addition. In that case reliance was placed on the further amendment of the proviso by Finance Act, 2020 enhancing "safe harbour limit" from 5% to 10%. It was contended on behalf of the assessee that the amendment would be retrospective in nature, which submission was controverted on behalf of the Revenue, placing reliance on the explanatory note to Finance Act, 2020 stating that the amendment will take effect from 01.04.2021 and shall accordingly apply in relation to A.Y. 2021-22 and subsequent assessment years. 12. A co-ordinate Bench of this Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive per cent of the sale consideration." 13. It can thus be seen that the CBDT had acknowledged that there can be genuine cases, where there would be a variance between the "stamp duty value" and the "actual consideration received" in respect of similar properties depending upon variety of factors". It can be seen that such variance indeed occurs on the basis of location, dimension, access and other facilities which a particular property may enjoy. It is necessary to note that the stamp duty value or the ready reckoner value is essentially an estimate. Section 50C(1) is an anti-avoidance provision to prevent evasion of tax by showing lesser consideration in the transactions. However, after acknowledging the fact of variance between the st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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