10% Tolerance Band u/s 43CA Applies Retrospectively to Address Stamp Valuation Discrepancies: ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that a 10% tolerance band under Section 43CA, introduced to address discrepancies in stamp valuation, applies retrospectively. The case involved differences in property valuation for taxation purposes, where the taxpayer argued for the application of the tolerance band to past transactions. ITAT upheld this view, citing legislative intent to mitigate valuation disputes and ensure fairness. The tribunal emphasized that retrospective applicability aligns with the principle of natural justice, as taxpayers should not be penalized for historical discrepancies arising from market fluctuations or procedural inconsistencies. This decision is expected to reduce litigation and foster clarity in property tax valuations, benefiting taxpayers and tax administrators alike.