{"id":59936,"date":"2026-05-20T13:10:53","date_gmt":"2026-05-20T07:40:53","guid":{"rendered":"https:\/\/itatonline.org\/digest\/shreem-properties-v-dcit-mum-trib-www-itatonline-org\/"},"modified":"2026-05-20T13:10:53","modified_gmt":"2026-05-20T07:40:53","slug":"shreem-properties-v-dcit-mum-trib-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/shreem-properties-v-dcit-mum-trib-www-itatonline-org\/","title":{"rendered":"Shreem Properties v. DCIT (Mum.)(Trib.) www.itatonline.org ."},"content":{"rendered":"<div>\n<p class=\"p2\">The assessee, engaged in the business of construction and development, sold certain immovable properties at values lower than the stamp duty valuation. The Assessing Officer invoked section 43CA and made addition on the basis of stamp duty valuation. On reference made by the Assessing Officer, the DVO determined the valuation at figures substantially lower than the stamp duty valuation. The CIT(A) restricted the addition to the difference between the DVO valuation and the agreement value but denied the benefit of the 10% safe harbour tolerance on the ground that the proviso to section 43CA applied only with reference to stamp duty valuation and not DVO valuation. On appeal, the Tribunal held that once the valuation determined by the DVO substitutes the stamp duty valuation, the benefit of the safe harbour tolerance band is also required to be applied with reference to the DVO valuation. Following the Special Bench decision in <span class=\"s1\">Shreyas Naynesh Modi v. ITO<\/span> (ITA No. 4453\/Mum\/2024, dt. 23-01-2026), the Tribunal held that the safe harbour provisions are remedial and curative in nature and deserve purposive interpretation to mitigate hardship arising from marginal valuation differences in genuine transactions. Since the variation between the agreement value and DVO valuation in all the transactions was below 10%, no addition u\/s 43CA could survive. Accordingly, the addition was deleted.<b> <\/b>(ITA No. 6874\/Mum\/2025, dt. 18-05-2026) \u00a0(AY. 2018-19) \u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>S.43CA: Transfer of assets- other than capital assets- Full value of consideration- stock in trade-Agreement value \u2013 Stamp valuation  &#8211; Safe harbour tolerance of 10% applies with reference to valuation determined by DVO \u2013 Once DVO valuation substitutes stamp duty valuation, no addition can be made if variation between agreement value and DVO valuation is within prescribed tolerance band \u2013 Addition deleted. [S.50C , 143(3)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-59936","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fAI","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59936"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59936\/revisions"}],"predecessor-version":[{"id":59937,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59936\/revisions\/59937"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}