Anand Developers, Sangli V. Assistant Commissioner of Income-Tax, Circle -2, Sangli

ITA 430/PUN/2020

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 1497 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 24-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Retrospective amendment
• Section: 43CA; 143(3); 50C; 43

Judgement Text

आयकर अपीऱीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI S.S.GODARA, JM AND SHRI DR. DIPAK P. RIPOTE, AM आयकर अपीऱ सं. / ITA No.430/PUN/2020 ननधधारण वषा / Assessment Year : 2016-17 Anand Developers, C.S.No.365/2/2, Sharayu, Nagraj Colony, Vishrambhaug, Sangli – 416 415 PAN : AAQFA4833M .......अपऩलधथी / Appellant बनधम / V/s. ACIT, Circle 2, Sangli ......प्रत्यथी / Respondent Assessee by : None Revenue by : Shri Arvind Desai सपनवधई की तधरऩख / Date of Hearing : 21.06.2022 घोषणध की तधरऩख / Date of Pronouncement : 29.08.2022 आदेश / ORDER PER S. S. GODARA, JM : 1. This assessee’s appeal for A.Y. 2016-17 is directed against the CIT(A), Pune’s order dated 04/03/2020 passed in case No. ITBA/APL/S/250/2019- 20/1026127927(1) involving proceeding u/s. 143(3) of the Income Tax Act, 1961; in short "the Act”. Case called twice. None appears on assessee’s behest. It is accordingly proceeded ex-parte. We have heard the Revenue. Case file perused. 2 ITA No.430/PUN/2020 A.Y. : 2016-17 Anand Developers, 2. Coming to the assessee’s sole substantive grievance in the instant appeal challenging the correctness both the lower authorities action making section 43 CA addition of Rs.26,79,000 in both the lower proceedings, it inter alia emerges at the outset from a perusal of the CIT(A)’s detailed discussion that the corresponding actual sale consideration figure was Rs.5,58,00,000/-, SRO price at Rs.8,50,20,000/- and DVO had determined the sum to the tune of Rs.5,84,79,000/- ; respectively. Meaning thereby that the difference between DVO and actual rate turns out to be less than 10% as per section 43 CA(1) first proviso stipulating tolerance margin of 5% vide Finance Act, 2018 w.e.f. 01.04.2019; as increased to 10% by the Finance Act 2020 w.e.f. 01.04.2021; respectively. Mr. Desai vehemently argued that we are in assessment year 2016-17 whereas foregoing statutory amendment(s) do not carry any retrospective effect. We find no merit in the Revenue’s instant argument as tribunal co- ordinate bench in Dharamshibhai Sonani V/s ACIT(2016) 161 ITD 627(Ahd) and Maria Fernandes Cheryl V/s. ITO (2021) 123 taxmann.com 252(Mum) hold the foregoing tolerance similar tolerance margin(s) in section 50C as carrying retrospective effect being curative in nature. We also wish to make it clear that the legislature has introduced pari materia provision both at section 43CA (2)(4) and section 50C(1) 1 st and 2 nd proviso, applicable in specified circumstances. We therefore hold that tribunal’s foregoing co- ordinate benches’ decisions very much apply in the facts of the instant case as well where the differential rate in actual sale consideration vis-à-vis SRO 3 ITA No.430/PUN/2020 A.Y. : 2016-17 Anand Developers, prices is less than 10% (supra) u/s. 43CA(1) 1 st proviso The assessee succeeds in his sole substantive ground in very terms. 3. This assessee’s appeal is allowed. Order pronounced in the Open Court on this 29 th day of August, 2022. Sd/- Sd/- (DR.DIPAK P.RIPOTE) (S.S. GODARA) लेखध सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य/JUDICIAL MEMBER पपणे / Pune; ददनधांक / Dated : 29 th August, 2022. Ashwini आदेश की प्रनतनलनप अग्रेनषत / Copy of the Order forwarded to : 1. अपऩलधथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(A), Kolhapur. 4. The Pr.CIT, Kolhapur. 5. नवभधगऩय प्रनतनननध, आयकर अपऩलऩय अनधकरण, “ए” बेंच, पपणे / DR, ITAT, “A” Bench, Pune. 6. गधर्ा फ़धइल / Guard File. आदेशधनपसधर / BY ORDER, // True Copy // Senior Private Secretary आयकर अपऩलऩय अनधकरण, पपणे / ITAT, Pune. 4 ITA No.430/PUN/2020 A.Y. : 2016-17 Anand Developers, S.No. Details Date Initials 1 Draft dictated on 21.06.2022 2 Draft placed before author 24.08.2022 3 Draft proposed & placed before the Second Member 4 Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS 6 Kept for pronouncement on 7 Date of uploading of Order 8 File sent to Bench Clerk 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order