PAWAN BHATI,NOIDA vs. DCIT CIRCLE 5(2)(1) NOIDA, NOIDA

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ITA 1755/DEL/2026Status: DisposedITAT Delhi15 July 2026AY 2020-213 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that if the Assessing Officer was not satisfied with the assessee's claim regarding market value, the appropriate recourse was to refer the matter to the District Valuation Officer (DVO). The CIT(A) failed to appreciate this plea.

What were the facts?

The assessee sold four properties, and the Assessing Officer invoked Section 50C, alleging the sale consideration was less than the stamp duty value. The assessee claimed market rates were lower, supported by sale deeds of adjoining properties.

What were the issues?

Whether the Assessing Officer erred in not referring the matter to the DVO when the assessee provided evidence of market value lower than stamp duty value for property sale.

Which sections of the Income-tax Act were involved?

Section 50C,Section 147,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, DELHI

Before: SHRI ANUBHAV SHARMA & SHRI SANJAY AWASTHI

For Appellant: CA Ms. Khushi Agarwal, CA
Hearing: 07.07.2026Pronounced: 15.07.2026

P a g e | 1 ITA No.1755/Del/2026 Pawan Bhati (AY: 2020-21) IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER

ITA No.1755/Del/2026 (Assessment Year: 2020-21)

Pawan Bhati Vs. DCIT, Circle 5(2)(1) C/o CA Vaibhav Goel-75 A-2D, Sector 24, Navyug Market, 1st Floor, GB Nagar, Noida Ghaziabad 201001 UP 201307 UP स्थायीलेखासं./जीआइआरसं./PAN/GIR No: AHEPB9003B Appellant .. Respondent Appellant by : Sh. Vaibhav Goel, CA Ms. Khushi Agarwal, CA Respondent by : Sh. Balkrishan Gopal, Sr. DR

Date of Hearing 07.07.2026 Date of Pronouncement 15.07.2026

O R D E R PER ANUBHAV SHARMA, JM:

This appeal is preferred by the assessee against the order dated 12.12.2025 of the Ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/NFAC/S/250/2025-26/1083609851(1) arising out of the assessment order dated 25.02.2025 u/s 147 r.w.s 144B of the

P a g e | 2 ITA No.1755/Del/2026 Pawan Bhati (AY: 2020-21) Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by NFAC, for AY: 2020-21.

2.

Heard and perused the record. On hearing both sides we find that assesse had sold 4 properties in regard to which ld. Assessing Officer has invoked provisions of Section 50C of the Act to allege that the sale consideration is less than the stamp value and in regard to which assesse claims that at least 4 sale deeds of adjoining properties were submitted to Assessing Officer to show that the market rate was less than the sale consideration.

3.

After giving thoughtful consideration to the facts and circumstances, we find that though assesse has not filed any valuation report but has relied the sale deeds of properties to claim that sale consideration was according to market value so in that case, if the ld. Assessing Officer was not satisfied with the claim then the appropriate recourse available with the Assessing Officer was to have matter referred to DVO (District Valuation Officer). We find that in submissions made to ld. CIT(A), copy of which is available at page No. 174-178, this plea was raised specifically, however, ld. CIT(A) has not appreciated the same.

P a g e | 3 ITA No.1755/Del/2026 Pawan Bhati (AY: 2020-21) 4. In the light of aforesaid discussion we are accordingly inclined to allow the appeal of assesse for statistical purposes and setting aside the impugned orders, issue on merits are restored to Assessing Officer, with a direction to refer the matter to DVO and thereupon pass order afresh on merits.

Order pronounced in the open court on 15.07.2026

Sd/- Sd/- (Sanjay Awasthi) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 15.07.2026 Rohit, Sr. PS

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