GAURAV PANDEY,GONDA V. THE DCIT/ACIT (CENTRAL CIRCLE-2), LUCKNOW

ITA 618/LKW/2025

AI Insights

The case involves an appeal by Gaurav Pandey against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which upheld an addition of Rs.17,28,000 to the assessee's income for the assessment year 2021-22. The addition was initially made by the Assessing Officer under section 56(2)(x) of the Income Tax Act, citing the difference in the declared and assessed value of a residential property transaction. The assessee contested this addition, arguing that the transaction fell within the safe harbor provisions of a CBDT circular that raised the safe harbor limit from 10% to 20% for real estate transactions during the period from 12th November 2020 to 30th June 2021. The Tribunal found that the assessee's transaction indeed met the criteria set out in the CBDT circular, leading to the decision to allow the appeal and delete the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785970 (ITAT-LUCKNOW)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2021-2022
• Appeal Filed On: 28-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.R.N. SHUKLA
• Assessee Lawyers: MAHENDRA KUMAR; F
• Keywords: Fair market value
• Section: 143(3)

Judgement Text

"I.T.A. No.618/Lkw/2025 Assessment Year:2021-22 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘SMC’, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.618/Lkw/2025 Assessment Year:2021-22 Gaurav Pandey Deverda Belsar Road, Gonda-271401 PAN:FJRPP0984F Vs. DCIT/ACIT, Central Circle-2, Lucknow. (Appellant) (Respondent) O R D E R (A) This appeal vide I.T.A. No.618/Lkw/2025 has been filed by the assessee for assessment year 2021-22 against impugned appellate order dated 18/06/2025 (DIN & Order No.ITBA/APL/S/250/2025- 26/1077150023(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. (B) In this case assessment order dated 31/12/2022 was passed u/s 143(3) of the I. T. Act whereby the assessee’s total income was determined at Rs.22,24,830/- as against returned income of Rs.4,96,830/-. In the aforesaid assessment order, an addition of Rs.17,28,000/- was made u/s 56(2)(x) of the Act. The relevant portion of the assessment order is reproduced as below: Appellant by Shri Mahendra Kumar, F.C.A. Respondent by Shri R.R.N. Shukla, Addl. CIT (D.R.) Printed from counselvise.com I.T.A. No.618/Lkw/2025 Assessment Year:2021-22 2 (B.1) The assessee’s appeal against the aforesaid assessment order was dismissed by the learned CIT(A) vide impugned appellate order dated 18/06/2025. The present appeal has been filed by the assessee against the aforesaid impugned appellate order of learned CIT(A). (C) At the time of hearing, learned A.R. for the assessee submitted that the Assessing Officer erred in making the aforesaid addition of Rs.17,28,000/- without referring the matter to the valuation cell to determine fair market value of the property (residential unit). He further Printed from counselvise.com I.T.A. No.618/Lkw/2025 Assessment Year:2021-22 3 submitted that in any case the addition made is in violation of the CBDT Circular whereby the safe harbor was raised from 10% to 20% for transactions in real estate during the period 12th November 2020 to 30th June 2021. The relevant portion of the CBDT circular is reproduced below: Learned A.R. further submitted that the property transaction by the assessee was of the value below Rs. two crore and transaction took place between 12th November 2020 to 30th June 2021. Further he submitted that the property purchased by the assessee was in the nature of primary purchase of residential house. Therefore, learned A.R. for the assessee submitted, the assessee satisfied all the requirements for being granted the benefit as per the aforesaid CBDT circular. Accordingly, he submitted, the aforesaid addition of Rs.17,28,000/- should be deleted. Learned Departmental Representative accepted, in all fairness that aforesaid CBDT circular was applicable in the case of the assessee; and left the matter to Printed from counselvise.com I.T.A. No.618/Lkw/2025 Assessment Year:2021-22 4 the discretion of the Bench. In view of the foregoing, the transaction of the assessee is residential property, is duly covered by the aforesaid CBDT circular because the property transaction by the assessee was of the value below Rs. two crore and transaction took place between 12th November 2020 to 30th June 2021. In view of the aforesaid, Assessing Officer is directed to delete the aforesaid addition of Rs.17,28,000/-. Thus, the appeal of the assessee is allowed. (D) In the result, the appeal of the assessee is allowed. (Order pronounced in the open court on 31/10/2025) Sd/. (ANADEE NATH MISSHRA) Accountant Member Dated:31/10/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T. Printed from counselvise.com "