AMIT OMPRAKASH BAJAJ,AKOLA vs. INCOME TAX OFFICER - WARD 1, AMRAVATI, AMRAVATI

The brief facts of the case are that, the assessee has filed the return of income for A.Y. 2018-19 on 29.10.2018 disclosing a total income of Rs.5,75,770/- and the case was selected for limited scrutiny for the reason that “purchase value of property less than the value as per stamp duty”. Accordingly, the Assessing Officer (A.O) has issued notice u/sec. 143(2) & 142(1) of the Act. The A.O find that assessee has entered into transaction of leased hold property for Rs. 22,74,000/- and whereas the stamp duty as per SRO value is Rs. 35,10,000/- and called for explanations for difference and applicability of provisions of section 56(2)(x) of the Act. In compliance to the notice issued u/sec. 142(1) of the Act, the assessee has submitted that he has obtained leasehold rights as per deed of assignment of MIDC Plot and he has not purchased the plot and therefore, the provisions of section 56(2)(x) of the Act are not applicable to the leasehold property. Whereas the AO has considered the provisions of section 56(2)(x) of the Act and the submissions of the assessee and was not satisfied with the explanations and made the addition of differential amount of Rs. 12,36,000/- u/sec56(2)(x) of the Act and assessed the total income of Rs.18,11,770/- and passed the order u/sec. 143(3) r.w.s. 143(3A) & 143(3B) of the Act., dated 26.02.2021. 3. Aggrieved by the order, assessee has filed an appeal before the CIT(A). Whereas CIT(A) has considered the grounds of appeal, statements of facts, finding of the AO and the submissions of the Ld.AR, but has confirmed the action of the AO and dismissed the appeal. Aggrieved by the order of Ld.CIT(A), assessee filed the present appeal.

At the time of hearing, the Ld.AR submitted that Ld.CIT(A) has erred in sustaining the addition made by the AO invoking the provisions of section 56(2)(x) of the Act. Further the CIT(A) erred in relying on the findings of the assessing officer ignoring the explanations of the assessee. The Ld.AR submitted that assessee has got the property valued by the registered valuer subsequent to the passing of assessment order and the same could not be filed in the assessment proceedings. The Ld.AR emphasized that the assessee has a good case on merits and prayed for granting one more opportunity to substantiate the case with material evidences before the lower authorities and relied on the factual paper book. Per Contra, the Ld.DR relied on the order of the CIT(A).

Heard the rival submissions and perused the material on record. The sole crux of the disputed issue envisaged by the Ld.AR is that, the CIT(A) has erred in sustaining the addition made by the AO on the differential amount/value invoking section 56(2)(x) of the Act in respect of the lease hold property. The Ld.AR submitted that the property is a leasehold property and the provisions of section 56(2)(x) of the Act are not attracted and alternatively pleaded that subsequent to the passing of assessment order, the lease hold property was valued with the registered valuer and demonstrated the valuation report placed at page No. 15-19 of the paper book and prayed for an opportunity of hearing before the lower Therefore, considering the facts, authorities. circumstances, submissions and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the disputed issue to the file of the jurisdictional assessing officer to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information. And the grounds of appeal of the assessee are allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 13th Oct., 2026 PAVAN KUMAR GADALE (JUDICIAL MEMBER) Pune, Dated: 13th October, 2026 vr/- आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : अिीिार्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

The Pr. CIT concerned. 4. तिभागीय प्रतितिति, आयकर अिीिीय अतिकरण, “SMC” बेंच, नागपूर / DR, ITAT, “SMC” Bench, Nagpur. गार्डफ़ाइि / Guard File. 5. ////