RAKESH AGARWAL ,ALIGARH vs. PCIT AGRA-1, AGRA

ITA 205/AGR/2025Status: DisposedITAT Agra13 October 2025AY 2016-17Bench: SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER, SHRI BRAJESH KUMAR SINGH (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO correctly accepted the assessee's total income based on the retrospective application of the amendment to Section 50C, as the difference between the consideration paid and the FMV was less than 10%. The Principal Commissioner's view was considered a change of opinion not supported by judicial precedents.

What were the facts?

The assessee purchased an immovable property at a consideration lower than the circle rate. The Assessing Officer (AO) reopened the case to examine the applicability of Section 56(2)(viib). The assessee contended that the difference between the sale consideration and the Fair Market Value (FMV) determined by the Valuation Officer was less than 10%, and the amendment to Section 50C regarding this tolerance band should apply retrospectively.

What were the issues?

Whether the amendment to Section 50C, providing a tolerance band for the difference between stamp duty value and sale consideration, applies retrospectively to AY 2016-17. Whether the Principal Commissioner's revisionary order under Section 263 was justified.

Which sections of the Income-tax Act were involved?

Section 56(2)(viib),Section 147,Section 142(1),Section 50C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA BENCH, DB: AGRA

Before: SHRI SUNIL KUMAR SINGH, & SHRI BRAJESH KUMAR SINGH

For Appellant: Shri Rajiv Bansal, CA
For Respondent: Shri Sukesh Kumar Jain, CIT(DR)
Hearing: 16.07.2025Pronounced: 13.10.2025

PER BRAJESH KUMAR SINGH, AM:

Both these appeals have been preferred against the respective orders of the Ld. Principal Commissioner of Income Tax, Agra -1, ([in short (Ld. PCIT] both dated 21.02.2025 for the Assessment Year 2016-17, passed u/s 263 of the Income-tax Act, 1961(hereinafter referred to as ‘the Act’). The respective Assessment Orders, subject matter of the orders

The order continues below.

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