2021 (7) TMI 1098

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....between the circle rate and actual consideration received. 2. Whether the learned CIT (A) as well as assessing officer was justified in not referring the property in question to the department valuation officer as demanded by the assessee and as per the provision of section 43CA read with section 50C of the Act." 2. Facts of the case, in brief, are that the assessee is a company and entered into a collaboration agreement with M/s Techmen Buildwell (P) Ltd. for construction of flats. As per the said agreement, the assessee company was to get 35% of total revenue from sale of various flats. It filed its return of income on 4th December, 2014 declaring total income at Rs. 2,80,893/-. During the course of assessment proceedings, the....

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....ng or both, is less than the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of computing profits and gains from transfer of such asset, be deemed to be the full value of the consideration received or accruing as a result of such transfer. (2) The provisions of sub-section (2) and sub-section (3) of section 50C shall, so far as may be, apply in relation to determination of the value adopted or assessed or assessable under sub-section (1). (3)................ (4).................." 3.3. A glance at the section 43CA makes it clear that it....

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....um/2014, order dated 25th January, 2017, he submitted that the Tribunal has allowed the appeal of the assessee on the ground that the difference between circle rate and the sale consideration received by the assessee is less than 10% and, therefore, in such a case, no addition can be made. Referring to the various decisions cited in the said decision, he submitted that where difference between circle rate and the sale consideration received by the assessee is less than 15%, addition has not been made. He submitted that the ld.CIT(A) has invoked the provisions of section 43CA. However, the Finance (No.2) Act, 2019 has increased such difference to 10% w.e.f. 01.04.2020. He submitted that since, in the instant case, the difference between circ....

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.... circle rate and the actual sale consideration comes to Rs. 7.73% of the circle rate which is less than 10%. I find, the Mumbai bench of the Tribunal in the case of M/s John Flower (India) Pvt. Ltd. (supra) while considering an identical issue has deleted the addition made by the AO u/s 50C on the ground that such difference is less than 10% of the stamp duty valuation. The relevant observations of the Tribunal from para 7 onwards read as under:- "7. We have heard the rival submissions and perused the orders of the authorities below and the case law relied on. Considering the entire facts of the assessee's case, the submissions of the assessee cannot be ignored. The sale consideration of these two plots sold on the same day though ....

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....iven by the assessee and the Departmental valuer was less than 10 per cent, the difference is liable to be ignored and the addition made by the AD cannot be sustained. Since in the instant case such difference is less than 10 per cent and considering the fact that valuation is always a matter of estimation where some degree of difference is bound to occur, we are of the considered opinion that the AD in the instant case is not justified in substituting the sale consideration at Rs. 20,55,0001- as against the actual sale consideration of Rs. 149,00,000 disclosed by the assessee. We, therefore, set aside the order of the CIT(A) and direct the AO to take Rs. 19,00,000/- only as the sale consideration of the property. The grounds raised by the ....