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Facts
The assessee purchased a property with co-owners for a consideration of ₹ 1,10,72,000/-, while the valuation determined was ₹ 1,19,63,800/-. The Assessing Officer made an addition of ₹ 29,90,950/-.
Held
The Tribunal referred to a coordinate bench decision that a "safer zone/bracket of 10%" amended by the Finance Act, 2020, with retrospective effect, is curative in nature. This decision was followed in a similar case for a co-owner.
Key Issues
Whether the addition made by the Assessing Officer based on the difference in property valuation is justified, considering the retrospective curative nature of the 10% safer zone provision?
Sections Cited
Finance Act, 2020
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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI NARENDER KUMAR CHOUDHRY
Aforesaid appeal by the assessee, is against the impugned order dated 30/12/2024, passed by the learned Commissioner of Income Tax (Appeals), Chennai, [for short “Ld. Commissioner”] for the assessment year 2015–16.
In the instant case, the assessee along with other co–owners had purchased property on a consideration of ` 1,10,72,000/– as against the valuation of ` 1,19,63,800/– as determined by the 2 Pahlajmal Partomal Khatri (HUF) ITA no.145/Nag./2025 Valuation Authority vide valuation dated 26/10/2017. Consequently, the Assessing Officer made the addition of ` 29,90,950/–, being 1/4th of total consideration of ` 1,19,63,800/– and the difference between the valuation adopted by the Valuation Officer and valuation shown by the assessee. Admittedly, the safer zone / bracket of 10% as amended by the Finance Act, 2020, w.e.f. 01/04/2021, which is having retrospective effect being curative in nature, as determined by the Co–ordinate Bench of the Tribunal, Mumbai Bench, in C. Maria Fernandes v/s ITO, [2021] 187 ITD 738 (Mum.), which has duly and respectfully been followed by the Co–ordinate Bench of the Tribunal, Nagpur Bench, in case of one of the co–owners titled as Harish Pehlajmal Khatri (HUF) v/s ITO, ITA no.384/Nag./2022, vide order dated 26/03/2024. Thus, the appeal raised by the assessee is hereby allowed by deleting the addition under consideration.
In the result, appeal filed by the assessee is allowed. Order pronounced in the open Court on 19/06/2025