ANANDA SWARUP NUNDY,HOOGHLY V. D.C.I.T., CIRCLE - 23(1), , HOOGHLY

ITA 1662/KOL/2024

AI Insights

The case involves Ananda Swarup Nundy, who appealed against the order of the National Faceless Appeal Centre, Delhi, which was based on the assessment order passed by the AO. The dispute centered on the valuation of a property sold by the assessee, which was crucial in determining the capital gains tax. The assessee had claimed a long-term capital loss, which was contested by the AO based on the stamp duty valuation. The CIT (A) dismissed the appeal without considering the valuation report from a registered valuer. The Tribunal found that both the AO and the CIT (A) failed to properly address the valuation issue and thus remanded the matter back to the AO for a correct assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 28891 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 23-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 09-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LOVIESH SHELLEY
• Assessee Lawyers: PROMIT MAJUMDAR
• Keywords: Valuation report
• Section: 143(3); 142(1); 143(2); 250

Judgement Text

" आयकर अपीलीय अधिकरण न्यायपीठ, कोलकाता । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SONJOY SARMA, JUDICIAL MEMBER & SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 1662/KOL/2024 Assessment Year: 2018-19 Ananda Swarup Nundy Ruplal Nundy Road, Chandannagore,. Hooghly, West Bengal, 712136 [PAN : AEGPN3979P] Vs DCIT, Circle 23(1), Aayakar Bhawan, G.T. Road. Khadina More, P.O. - Chinsurah, Hooghty, West Bengal, 712102 अपीलार्थी/ (Appellant) प्रत्‍ यर्थी/ (Respondent) Assessee by : Shri Promit Majumdar, Advocate Revenue by : Shri Loviesh Shelley, Addl. CIT सुनवाई की तारीख/Date of Hearing : 23.10.2024 घोषणा की तारीख /Date of Pronouncement : 24.10.2024 आदेश/O R D E R PER SONJOY SARMA, JUDICIAL MEMBER: The captioned appeal filed by the assessee, pertaining to assessment year 2018-19 are directed against the order passed by National Faceless Appeal Centre, Delhi (hereinafter referred to as the ‘ld. CIT(A)’) dated 14th June, 2024 passed u/s 250 of the Income Tax Act, 1961 (‘Act’), which is arising out of the assessment order passed u/s 143(3) read with section 144B of the Income-tax Act, 1961 (the Act) dated 19th May, 2021. Page | 2 ITA No.1662/KOL/2024 Ananda Swarup Nundy; A.Y. 2018-19 2. The brief facts of the case are that the assessee is an individual filed his return of income on 29th July, 2018, declaring total income of ₹3,61,480/- by claiming a long term capital loss of ₹74,65,000/-. The case of the assessee was selected for limited scrutiny in order to examine the issue of capital gain/ income on sale of property. Subsequently, the notice u/s 143(2) and 142(1) of the Act, were issued to the assessee. During the course of assessment proceedings, it was found that assessee had claimed a Long Term Capital loss of ₹74,65,000/- without considering the sale value of the land as determined by the valuation authority (stamp valuation), which was ₹3,85,84,617/-. The assessee had shown the cost of the property as 2,18,65,000/-, leading to the claim of the loss. However, the ld. AO found that based on the valuation adopted by the stamp valuation authority, there was actually a Long Term Capital Gain of ₹1,67,19,617/-. Accordingly, the ld. AO added this amount to the total income of the assessee. 3. Aggrieved by the order of the ld. AO filed the appeal before the ld. CIT (A). Before the ld. CIT (A), the assessee argued that the valuation should have been referred to the District Valuation Officer (DVO) to determine the correct value of the property. The assessee also submitted a valuation report from a registered valuer. However, the ld. CIT (A) dismissed the appeal without considering the valuation report submitted by the assessee or referring the matter to DVO. 4. Dissatisfied with the decision of the ld. CIT (A), the assessee is now in appeal before this Tribunal, arguing that both the lower authorities failed to obtain the correct valuation of the property and did not take the registered valuation report into account. Therefore, the ld. Counsel for the assessee prayed before the Bench Page | 3 ITA No.1662/KOL/2024 Ananda Swarup Nundy; A.Y. 2018-19 that the matter may be remanded back to the file of the ld. AO for re-consideration and for correct valuation to be determined by DVO. 5. On the other hand, the ld. DR opposed assessee’s contention and submitted that there was no infirmity in the orders passed by the lower authorities. 6. We after hearing the rival submissions and perusing the material available on record, we find that the ld. AO made the addition based on the stamp duty valuation fixed by the authority, without considering the valuation report submitted by the assessee. Furthermore, the ld. AO did not refer the matter to the DVO for determining the correct value of the property. The ld. CIT (A) also failed to take this aspect into account. In the interest of justice, we deem it appropriate to remand the issue back to the file of the ld. AO with a direction to refer the matter to DVO for valuation of the property and determine the correct Long Term Capital Gain after considering the DVO’s report and registered valuers report submitted by the assessee. In light of the above discussion, the appeal of the assessee is allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 24th October, 2024 at Kolkata. Sd/- Sd/- (SANJAY AWASTHI) (SONJOY SARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Kolkata, Dated 24.10.2024 *SS, Sr.Ps Page | 4 ITA No.1662/KOL/2024 Ananda Swarup Nundy; A.Y. 2018-19 आदेश की प्रतततिति अग्रेतषत/Copy of the Order forwarded to : 1. अिीिार्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. संबंतित आयकर आयुक्त / Concerned Pr. CIT 4. आयकर आयुक्त ( अिीि ) / The CIT(A)- 5. तवभागीय प्रतततनति , अतिकरण अिीिीय आयकर , कोिकाता/DR,ITAT, Kolkata, 6. गार्ड फाईि / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Sr. PS/ Assistant Registrar आयकर अिीिीय अतिकरण ITAT, Kolkata "