Section 43CA valuation dispute remanded for fresh verification of agreement-date evidence and tolerance band benefit

Section 43CA permits the stamp duty value to be tested against the agreement date where the agreement and registration dates differ, and the statutory tolerance band must be verified on the facts. On the material described, the assessee relied on allotment letters, registered sale agreements, possession and completion-related documents, and evidence that consideration was offered in later years. Because this additional material required fresh factual examination, the matter was restored to the Assessing Officer for re-adjudication after due hearing, with direction to consider the documents and extend the 10% tolerance benefit if applicable.

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Issues: Whether the addition made under section 43CA required fresh examination on the basis of the agreement date, allotment documents and subsequent evidence, and whether the assessee was entitled to the benefit of the statutory tolerance band.

Analysis: The appeals arose from an addition made on the difference between the declared sale consideration and the stamp duty valuation of flats. The assessee produced allotment letters, registered sale agreements, possession and completion-related documents, and material indicating that consideration had been offered to tax in later years. The statutory scheme under section 43CA(3) permits reference to the stamp duty value as on the date of agreement where the agreement date and registration date differ, and the tolerance limit under section 43CA was also relevant for verification. In view of the additional material and the need to examine the claim afresh, the matter was restored to the jurisdictional Assessing Officer for re-adjudication after giving due opportunity of hearing.

Conclusion: The addition was not finally sustained or deleted at this stage and the matter was remanded to the Assessing Officer for fresh decision, with direction to examine the assessee's documents and to extend the 10% tolerance benefit if applicable.

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