CHITRA KUTHIALA,DELHI V. DCIT - CIRCLE INTERNATIONAL TAXATION, NEW DELHI

ITA 269/DEL/2024

AI Insights

The case involves an appeal by Chitra Kuthiala against the assessment order passed by the Deputy Commissioner of Income Tax, Circle International Taxation, New Delhi, for the assessment year 2020-21. The primary contention in the appeal was regarding the valuation of property for tax purposes, where the assessee argued that the cost of acquisition and improvement were based on a valuation report from a reputable valuer, which was not considered by the Assessing Officer. The assessee also contested the reliance on a valuation report from the District Valuation Officer (DVO), which allegedly disagreed with the assessee's valuer and demanded invoices for improvements made over a long period, which the assessee found unjustifiable. Additionally, the assessee challenged the DVO's method of calculating the cost of acquisition and the depreciated value of the property. However, the Tribunal dismissed the appeal without addressing these substantive issues due to procedural defects in the appeal documents.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23867 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 28-11-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 26-01-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DHARAMVIR SINGH
• Keywords: Cost of acquisition; Principle of natural justice; Valuation report
• Section: 143(3); 20

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “I” BENCH: NEW DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI YOGESH KUMAR US, JUDICIAL MEMBER ITA No.269/Del/2024 [Assessment Year : 2020-21] Chitra Kuthiala, C/o-S S P J & Co., 105, Roots Tower, Laxmi Nagar District Centre, East Delhi, Delhi-110092. PAN-DGNPK6328B vs DCIT, Circle International Taxation, New Delhi. APPELLANT RESPONDENT Appellant by None Respondent by Shri Dharamvir Singh, CIT DR Date of Hearing 28.11.2024 Date of Pronouncement 28.11.2024 ORDER PER PRADIP KUMAR KEDIA-A.M.: The instant appeal has been filed at the instance of the assessee arising from the assessment order dated 28.11.2023 passed u/s 143(3) r.w.s 144C(13) of the Income Tax Act, 1961 [“the Act”] pertaining to assessment year 2020-21. 2. Grounds of appeal raised by the assessee read as under:- 1. \"That the cost of acquisition and cost of improvement taken by assessee was based upon valuation report issued by senior, well established and renowned valuer, however same was not considered by id. Assessing officer at the time of issuing order to the assessee. 2. That the Id. Assessing officer considered the valuation report issued by District Valuation Officer (hereinafter referred as \"DVO\") only where DVO completely disagreed with the cost of improvement considered by valuer of assessee in his valuation report dated 12.12.2019 as the invoices based upon which cost of improvement taken was not submitted by assessee. In this case demand of invoices for such long period (where more than 20 years passed) by ITA No.269/Del/2024 Chitra Kuthiala vs DCIT Page | 2 DVO as well as the Id. Assessing officer is not justifiable as per income tax act as well as rules and regulations appurtenant thereto. Hence 100% disallowance of cost of improvement on the ground that no expenditure incurred on property over a long period of time is not justifiable. 3. That the DVO has erred computing the cost of acquisition as on 01.04.2001 based on property located at Vasant Kunj which was of category C and property sold by assessee was also of category C still DVO considered property located at Vasant Kunj in better locality and made reduction of 10% of value while calculating the land rate per Sqm. Hence, it decreases the value of land of assessee as on 01.04.2001. 4. That the DVO has erred in calculating the depreciated value of cost of construction of structure (based on DPAR of 1992) as on 01 April 2001 as value of cost of construction of assessee is calculated about the half of amount of cost of construction of property the DVO has taken/assumed for reference for calculation of valuation of property. Hence, value of cost of construction of structure calculated by DVO is completely disagreed by assessee. 5. That on the facts and in the circumstances of the case and in law, Ld AO erred in passing the assessment order, without doing any additional enquiry without any specific reasons. 6. That on the facts and in the circumstances of the case and in law, Ld AO in passing the impugned assessment order, without giving any Show Cause Notice which was unlawful and made in violation of principles of natural justice.” 3. When the matter was called for hearing, no one appeared on behalf of the assessee. It is seen from the record that defective memo dated 29.01.2024 was issued to the assessee pointing out that the appeal memo is not signed by the assessee and also the grounds of appeal has not been signed. The assessee was informed that the rectification of defect is required to be carried out within 10 days of the receipt of the defect memo. ITA No.269/Del/2024 Chitra Kuthiala vs DCIT Page | 3 4. We have heard Ld.CIT DR for the Revenue and perused the material on record. It is seen from the record that appeal of the assessee continues to remain defective and no measures have been taken to remove the substantive defect pointed out to the assessee. Under these circumstances the unsigned appeal memo and grounds annexed thereto, cannot be taken cognizance. Hence, the appeal filed by the assessee is nonest appeal and a nullity in law. The appeal of the assessee is thus, dismissed in limine. 5. In the result, the appeal of the assessee is dismissed in limine. Order pronounced in the open Court on 28th November, 2024. Sd/- Sd/- (YOGESH KUMAR US) JUDICIAL MEMBER (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER * Amit Kumar * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "