#valuation report

The Kolkata ITAT ruled that the 10 % tolerance under Section 50C is retrospective, striking down the ₹9,94,312 addition for AY 2014-15 because the valuation gap was only 8.5 %. Taxpayers can therefore rely on the tolerance limit for past years, limiting exposure to Section 50C additions when the gap falls within the prescribed range.

Bombay High Court rules that mesne profits payable by government entities must be determined based on comparable market data rather than standard commercial rates, ensuring equitable valuation. The judgment underscores that state-owned undertakings are entitled to moderated rates, reflecting their non-commercial status and public function.

The Bombay High Court struck down an inflated mesne profits award that relied on rental rates from premium commercial zones, ruling that valuation must be grounded in the actual nature, condition, and locality of the disputed property. This sets a critical precedent for landlords and tenants in rent-controlled areas, ensuring mesne profits are calculated based on realistic market conditions, not speculative benchmarks.