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of <h1>First proviso to Section 43CA held retrospective; stamp duty value within 5% of agreement escapes addition under s.43CA</h1> <h3>M/s. Nisarg Developers, Versus DCIT, Circle-7, Pune</h3> ITAT PUNE - AT held that the first proviso to section 43CA (tolerance band introduced by Finance Act, 2017) has retrospective effect, following earlier ... Addition being difference in the Stamp duty Value and the Agreement Value u/s 43CA - whether first proviso to section 43CA had retrospective effect or not? - HELD THAT:- This issue is no more res integra as it is covered by catena of decisions, the tolerance band introduced by Finance Act, 2017 w.e.f.01.04.2018 has retrospective effect as held in Chandra Prakash Jhunjhunwala [2019 (8) TMI 1192 - ITAT KOLKATA], John Flower (India) (P) Ltd. [2017 (1) TMI 1682 - ITAT MUMBAI], Karb Associates (P) Ltd. [2021 (8) TMI 1184 - ITAT KOLKATA] and Sandeep Kumar Poddar [2023 (3) TMI 666 - ITAT KOLKATA] Thus, the difference between the value for stamp duty purposes and the actual sale consideration is less than 5%, therefore, following the decision of Coordinate Bench (supra), we hold that no addition is warranted. Assessee appeal allowed. The appellant, a partnership firm, appealed assessment under section 143(3) for A.Y.2017-18 where the AO invoked section 43CA and adopted stamp duty value as 'full value of the consideration' after finding agreement consideration lower than stamp duty valuation, making an addition of Rs.1,45,940. The CIT(A) confirmed the addition rejecting reliance on the proviso to section 43CA(3)/(4) and an earlier Bench decision advocating a de minimis tolerance. The Tribunal framed the issue whether 'the first proviso to section 43CA had retrospective effect' and, relying on a line of Coordinate Bench decisions, held that the 'tolerance band introduced by Finance Act, 2017 w.e.f.01.04.2018 has retrospective effect.' Applying that principle, and noting the difference between stamp duty value and agreement value was less than 5%, the Tribunal concluded that 'no addition is warranted' and allowed the appeal.
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