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Facts
The assessee filed an appeal against the CIT(A)'s order for AY 2018-2019. The AO had treated the difference between guideline value and document value for 8 properties as income from other sources. The assessee had purchased these properties through development agreements and power of attorneys.
Held
The Tribunal noted that the documents were development agreements and power of attorneys, not outright property acquisitions. To allow for a deeper examination by the AO, the issues were restored to the AO's file for readjudication.
Key Issues
Whether the difference between guideline value and actual transaction value in development agreements and power of attorneys can be treated as income from other sources without proper verification and opportunity to the assessee.
Sections Cited
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Income Tax Appellate Tribunal, “A” BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
(निर्धारण वर्ा / Assessment Year : 2018-2019) Bablu Das, Vs DCIT, Circle-1, Durgapur 1/12, Srinagar Pally, Durgapur Bardhaman, W.B.-713213 PAN No. :AFBPD 9501 M (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by Shri Miraj D Shah, AR रधजस्व की ओर से /Revenue by : None सुनवाई की तारीख / Date of Hearing : 11/12/2025 घोषणा की तारीख/Date of Pronouncement : 11/12/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 10.03.2025 for the assessment year 2018-2019.
It was submitted by the ld. AR that the only issue in assesse’s appeal was in respect of certain information which has been received by the AO in the AIS which showed that the assessee had purchased 8 properties and there was variation in the guideline value being the Government fixed rates and the amount mentioned in the document. It was the submission that the AO himself in page 4 of his order has categorically mentioned that the document copies had been called for from the Sub Registrar’s office and no information has been received from the office of the Sub Registrar. Consequently he treated the difference between the government rates fixed and the amounts mentioned in the document as the income from other sources in the hands of the assessee. The ld. AR drew our attention to page 81 of the paper book which is the consolidated list of the documents and the type of deed the same read as follows :-
It was the submission that the these are only development agreements and power of attorneys and there is no acquisition of property by the assessee. It was the submission that he has no objection if the issue is restored to the file of the AO for verification of the documents, which the assessee also produce.
None represented on the behalf of the revenue.
We have considered the submissions. A perusal of page 81 of the paper book as also the deeds produced shows that these are only development agreements and power of attorneys. However, so that the same may be examined in depth by the AO, the issues in this appeal are restored to the file of the jurisdictional AO for readjudication after granting the assessee adequate opportunity of being heard.