Case Law Analysis
|Income Tax Appellate Tribunal
Section 56(2)(vii)(b) Safe Harbour Limit Applies Retrospectively : ITAT Mumbai Deletes Rs. 5.6 Lakh Addition for AY 2017-18
ITAT Mumbai holds that the 10% safe harbour limit under Section 56(2)(vii)(b) of the Income Tax Act applies retrospectively, setting aside an addition of Rs. 5,59,522 for AY 2017-18. The ruling clarifies that the assessee is liable only for the difference exceeding the 10% threshold between stamp duty value and actual consideration, reinforcing tax certainty for property transactions.