RAMKRISHNA BANERJEE,,HOOGHLY vs. ITO, CIRCLE 23(1),, HOOGHLY

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ITA 1399/KOL/2026Status: DisposedITAT Kolkata23 July 2026AY 2020-20213 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the Assessing Officer did not follow the procedure laid down in Section 55A of the Act for referring the valuation to the Department Valuation Officer. Therefore, the assessment order was not in accordance with the law.

What were the facts?

The assessee filed a return of income and claimed deductions. The Assessing Officer passed an assessment order treating the difference between the fair market value of an immovable property and the purchase consideration as income from other sources.

What were the issues?

Whether the Assessing Officer correctly determined the income from the immovable property without referring the valuation to the Department Valuation Officer as per Section 55A of the Act.

Which sections of the Income-tax Act were involved?

Section 55A,Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH,

Before: SHRI YOGESH KUMAR U.S. & SHRI RAKESH MISHRA

For Appellant: Shri Rip Das, AR
For Respondent: Shri Praveen Das Chowdhury, Sr. DR
Hearing: 21.07.2026Pronounced: 23.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No.1399/KOL/2026 Assessment Year: 2020-21

Ramkrishna Banerjee Vs. ITO Circle-23(1), Hooghly 01, Santiniketan Pally, Arambagh Court, Hooghly West Bengal-712601 [PAN: ADXPB9495L] APPELLANT RESPONDENT Appellant by : Shri Rip Das, AR Respondent by : Shri Praveen Das Chowdhury, Sr. DR Date of hearing : 21.07.2026 Date of Pronouncement : 23.07.2026 O R D E R PER YOGESH KUMAR U.S., JUDICIAL MEMBER:

This Appeal is filed by the Assessee against the order of the NFAC, Delhi (Appeal) [“the Ld. CIT(A)”, for short], dated 27.01.2026 passed u/s 250 of the Income Tax Act, 1961 (“the Act”, for short) for the assessment year 2020-21.

2.

Brief facts of the case are that, Assessee filed his return of income declaring income of Rs.65,29,354/- and claimed deduction of Rs.35,000/- and total income was shown at Rs.64,94,350/-. An Assessment Order came to be passed on 06.03.2025 u/s 147 r.w.s.

ITA No.1399/Kol/2026 Ramkrishna Banerjee; A.Y: 2020-21 144 r.w.s. 144B of the Act by making difference of the fair market value of the purchased or transferred immovable property as adopted/assessed by Stamp duty authority and purchase consideration as mentioned in the purchase deed is treated as income chargeable to tax under the head ‘income from other source’.

3.

The Learned Counsel for the Assessee pressed the Ground No.3 and contended that by not following the procedure as laid down in Section 55A of the Act for not referring the valuation of the Department Valuation Officer. Thus, sought for allowing Ground No.3 of the Assessee’s Appeal.

4.

Per Contra, the Ld. DR submitted that the Ld. Assessing Officer has rightly adopted the market value as per the sale deed/ sub- registrar records and make the addition which requires no interference at the hands of the Tribunal. Thus, sought for dismissal of the Appeal filed by the Assessee.

5.

We have heard the parties and perused the material on record. It is the specific case of the Assessee that during the Assessment proceedings, Assessee requested for referring the matter to DVO, however, the Assessing Officer has rejected the request of the Assessee. It is well-settled that when the Assessee disputes the value of consideration and subsequently requests the Assessing Officer for

ITA No.1399/Kol/2026 Ramkrishna Banerjee; A.Y: 2020-21 referral to DVO, the Assessing Officer is duty bound to refer the matter to the DVO as per section 55A of the Act. In the present case, the Assessing Officer have violated the said provision of law by rejecting the request of the Assessee for referring the matter to DVO.

6.

In view of the above, we remand the matter to the file of the Assessing Officer with a direction to comply with the provision of section 55A of the Act and decide the issue afresh in accordance with law. Needless to state the Assessee shall be provided with opportunity of being heard.

7.

In the result, Appeal of the Assessee is partly allowed for statistical purposes. Order pronounced on 23.07.2026. Sd/- Sd/- (RAKESH MISHRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 23.07.2026 DP, PS Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //TRUE COPY// ASSISTANT REGISTRAR KOLKATA BENCHES, KOLKATA

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