PRANAB KUMAR DANA,BANKURA vs. I.T.O., WARD - 3(1),, BANKURA

Brief facts of the case are that the assessee filed the return of income u/s 143(1) of the Act and in the intimation issued, an addition was made u/s 50C of the Act. Further, the assessee had claimed deduction u/s 54EC of the Act which was also not allowed. The Ld. Addl/JCIT(A) went through the intimation issued and has given his finding as under and partly allowed the appeal of the assessee: “5.0 Decision on Ground No. 1 to 3: I have carefully considered facts of case and order passed by Ld. AO against which appeal has been preferred. I have gone through appellant's submission, Form 35, intimation u/s 143(1) and provisions of relevant section and rules.

1 It is seen that the appellant is an individual and filed its Return of Income on 29.08.2019 for A.Y. 2019-20 declaring total income of Rs. 1,42,500/-. The Return was processed u/s 143(1) on 07.07.2020 determining income of Rs. 14,25,830/-. The Appellant submitted that the while computing the income from Long Term Capital Gain the stamp duty value has been adopted as sale consideration instead of the actual sale consideration. The Appellant has requested that the actual sale consideration the adopted for computing the Long Term Capital Gain. The contention of the Appellant is not acceptable. Since, capital gains has to be computed as per the provisions of section 50C. Since, the stamp duty value of the said property is more than the actual sale consideration the stamp duty value has to be adopted for computing the LTCG. Therefore, this ground of appeal is dismissed. Further, the Appellant has requested that deduction u/s 54EC amounting to Rs. 12,00,000/- being investment in NHAI bond be allowed. Therefore, for limited purposes for verification of contentions raised by the appellant, AO is directed to verify the claim of the assessee and after due verification, if the same is found to be correct then allow deduction u/s 54EC/-. This ground of appeal is allowed for statistical purposes.

0 Decision of ground No. 4: During the course of appellate proceedings, the appellant has not added/altered/modified any grounds of appeal; therefore, this ground of appeal is hereby dismissed. I.T.A. No.: 539/KOL/2025 Assessment Year: 2019-20 Pranab Kumar Dana.

0 In the result, the appeal of the appellant is partly allowed.”

Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before this Tribunal. It was argued by the Ld. AR that in view of the specific provision of section 50C(2) r.w.s. 55A of the Act the matter should have been referred to the DVO in accordance with the principles of natural justice. Our attention was drawn to page 2 of the appeal order of the Ld. CIT(A) which contains the grounds of appeal and page 4thereof. The Ld. AR vehemently argued and submitted that the property may be referred to the DVO as per law.

We have considered the submissions made. Since the assessee is disputing the valuation of the property and there was no occasion at the time of processing of return to make such a request, and before the Ld. CIT(A) all the opportunities allowed were not availed, therefore, in order to be fair to both the assessee and the Ld. AO, the order of the Ld. CIT(A) is hereby set aside with the direction that the Ld. CIT(A) himself refer to the DVO or the Ld. AO may be directed to refer the valuation of the property to the DVO and the appeal should be decided after considering the report of the DVO in accordance with law.

In the result, in view of the above, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 25th August, 2025. [Pradip Kumar Choubey] [Rakesh Mishra] Judicial Member Accountant Member Dated: 25.08.2025 Bidhan (Sr. P.S.) I.T.A. No.: 539/KOL/2025 Assessment Year: 2019-20 Pranab Kumar Dana. Copy of the order forwarded to:

Addl/JCIT(A)-Gwalior.

CIT-

CIT(DR), Kolkata Benches, Kolkata.

Guard File. //// By order