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Facts
The assessee purchased property for Rs. 1,84,38,570/- as per stamp valuation authority but declared only Rs. 4,00,000/-. The AO made an addition of Rs. 1,76,38,570/- for this valuation difference without referring to the DVO, and the CIT(A) dismissed the appeal due to the assessee's non-compliance.
Held
The tribunal remitted the matter back to the AO for fresh adjudication. The AO is directed to pass an afresh order after obtaining a report from the DVO regarding the difference in purchase stamp value, thereby setting aside the earlier orders of the AO and CIT(A).
Key Issues
The key legal issue was the valuation difference of property purchased by the assessee and the AO's failure to refer the matter to the DVO under Section 50C(2), compounded by the assessee's non-compliance before the lower authorities.
Sections Cited
50C
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Income Tax Appellate Tribunal, “B” BENCH: KOLKATA
Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]
ORDER / आदेश Per Pradip Kumar Choubey, JM:
This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeals)- NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 08.10.2024 for AY 2020-21.
Assessment Year: 2020-21 Lakshmi Ojha 2. The Ld. A.R by filing condonation petition submits that in fact NFAC, Delhi order was passed on 08.10.2024 and the assessee received message of service of order on the e-filing portal on 23.10.2024 and last due date of filing these two appeals before the Hon’ble ITAT on 22.12.2024 but it was filed by separate post on 09.12.2024. Hence according to him, there was no delay on those parts but since the registry has noted that there is a delay of 10 days, his submission is that the delay, if any, may be condoned. The Ld. A.R further submits that since he did not receive any message of order and when he received, he filed the appeal within time. Hence the delay was not intentional rather Bonafide. The Ld. AR filed an Affidavit. Keeping in view, the submission made by the assessee delay which is only 10 days as per report of the Registry is condoned.
Brief facts of the case of the assessee is that the assessee being an individual submitted return of income for AY 2020-21 declaring total income of Rs. 4,89,980/-. The case of the assessee was selected for scrutiny as it is observed that during the year the assessee has purchased property amounting to Rs. 1,84,38,570/- [Rs. 90,26,640/- and Rs. 94,11,930/- respectively] as per stamp value authority. However, the assessee has shown the value of property Rs. 4,00,000/- which is less than the value adopted by the stamp authority. A show cause notice was issued, no reply has been received from the side of the assessee nor given any clarification regarding the purchase below the stamp value as a result of which the AO added an amount of Rs. 1,76,38,570/- and assessed the total income to the tune of Rs. 1,81,28,550/-.
Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed as there was non- compliance on behalf of the assessee.
Being aggrieved and dissatisfied the assessee preferred an appeal before us.
The Ld. A.R instead of arguing into the merit of the case has only prayed that the assessee has to be given an opportunity to place its case before the AO as the AO did not refer the matter to the DVO for which the AO was legally bound. The Ld. A.R filed an Affidavit to this effect.
Assessment Year: 2020-21 Lakshmi Ojha 6. Contrary to that the Ld. D.R though supports the impugned order but did not raise any objection in remitting the appeal of the assessee to the file of AO.
Upon hearing the submission of the counsel of the respective parties, we have perused the order of Ld. CIT(A) as well as AO. It is pertinent to mention here that there was non-compliance to the show cause notice issued to the assessee before the AO nor there was non-compliance before the Ld. CIT(A). The assessee has filed an Affidavit which is as below:
Going over the order passed by the lower authorities and keeping in view the affidavit filed by the assessee and for the interest of justice, we remit back the appeal of the assessee to the file of AO with a direction to pass an afresh order after getting the report of the DVO as the issue relates to the difference of the purchase stamp value, as a result of which the we are restoring the appeal back to the file of AO for fresh
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 22nd May, 2025
Sd/- Sd/- (Rajesh Kumar/राजेश कुमार) (Pradip Kumar Choubey /�द�प कुमार चौबे) Accountant Member/लेखा सद�य Judicial Member/�या�यक सद�य Dated: 22nd May, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Lakshmi Ojha, BR, 8/6 Swaranika Co Operative, Housing Society Biren Roy Road, West Sarsuna-Kolkata-700061 2. Respondent – ITO, Ward-25(1), Kolkata 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail)