GOPALSINGH JASRAJ RAJPUROHIT ,MUMBAI V. ITO WARD 41(3)(1), MUMBAI

ITA 3961/MUM/2025

AI Insights

This case involves an appeal by the assessee, Gopalsingh Jasraj Rajpurohit, against the order of the Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi, which confirmed the addition made by the AO regarding the difference between the stamp duty value and the actual purchase consideration of a property. The assessee argued that he was unaware of the electronic notices due to his medical issues and lack of communication with his previous counsel, leading to non-compliance with the initial notices. The Tribunal found merit in the assessee's request to submit a new purchase agreement, which was deemed relevant to the case, and remanded the matter back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714442 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SWAPNIL CHOUDHARY
• Assessee Lawyers: BHARAT KUMAR
• Keywords: Reasonable cause; Sale consideration of property below Jantri Value
• Section: 142(1); 56(2)(vii)(b)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G”, MUMBAI BEFORE JUSTICE (RETD.) SHRI C.V. BHADANG, PRESIDENT AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER ITA No. 3961/Mum/2025 Assessment Year : 2017-18 Gopalsingh Jasraj Rajpurohit, 1, Chikuwadi, Near Avtar Studio, Malvani Church, Marve Road, Malad (West), Mumbai-400095. PAN : AGOPR0060P vs. ITO, Ward-41(3)(1), G Block, BKC, Bandra Kurla Complex, Near Videsh Bhavan, Bandra (East), Mumbai-400051. (Appellant) (Respondent) For Assessee : Shri Bharat Kumar For Revenue : Shri Swapnil Choudhary Date of Hearing : 06-08-2025 Date of Pronouncement : 08-08-2025 O R D E R PER VIKRAM SINGH YADAV, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi [„Ld.CIT(A)‟], dated 24-12-2024, pertaining to Assessment Year (AY) 2017-18. Printed from counselvise.com 2 ITA No. 3961/Mum/2025 2. At the outset, it is noted that there is a delay in filing the appeal as pointed out by the Registry. After hearing both the parties and perusing the facts placed on record, we find that there was reasonable cause for the delay in filing the present appeal and hence, the delay is hereby condoned and appeal is admitted for adjudication. 3. Briefly the facts of the case are that the assessee filed his original return of income on 31-03-2018, declaring total income of Rs. 30,20,960/-. Thereafter, notices were issued u/s. 143(2) and 142(1) of the Income Tax Act, 1961 („the Act‟), calling for necessary information/documentation. Further, the AO issued a show cause dt. 06-12-2019 followed by subsequent show cause dt. 14-12-2019, asking the assessee to show cause as to why the difference between stamp duty value amounting to Rs.1,52,30,016/- and the actual purchase consideration of Rs.20 lakhs should not be brought to tax in terms of provisions of section 56(2)(vii)(b) of the Act and the assessee was provided time to file his response/explanation by 16-12-2019. Thereafter, in absence of any submissions filed by the assessee, the difference between stamp duty value and the stated purchase consideration amounting to Rs.1,32,30,016/- was brought to tax in the hands of the assessee vide order dt.16-12-2019 passed u/s.144 of the Act. 4. The assessee thereafter carried the matter in appeal before the Ld.CIT(A), and as a part of his statement of facts, it was submitted by the assessee that he was unaware of the notices been issued electronically and as no physical notice was served upon him, he was ignorant upon the assessment proceedings and it was only on 14-12- 2019 when he got a call from the IT Department informing him after the ongoing assessment proceedings that he came to know about the proceedings and given that he was at his native place in Rajasthan, he Printed from counselvise.com 3 ITA No. 3961/Mum/2025 rushed back to Mumbai and met CA and reached Income tax office on 17-12-2019. However, by the time, the assessment order had already been passed on 16-12-2019. It was accordingly submitted before the Ld.CIT(A) that the matter may be remitted back to the file of the AO and an opportunity may be granted to present his case and file necessary submissions/documentation. 5. During the appellate proceedings before the Ld.CIT(A), notices were issued and on few occasions, the assessee sought adjournment, however, in absence of any documentary evidence filed by the assessee, the request for remand to the AO was not acceded to by the Ld.CIT(A) and he confirmed the addition so made by the AO. Against the said order, the assessee is in appeal before us. 6. During the course of hearing before us, the Ld.AR submitted that the assessee is facing various medical issues since 2017 and due to his medical condition and the fact that he has re-located to his native place and on account of lack of communication with his CA, his tax matters could not be handled in an effective manner. It was submitted that the assessee has since appointed another Counsel and who has advised him about the complexity of the matter and in light of that, the assessee wishes to place on record a copy of the purchase agreement relating to transaction under consideration and which clearly demonstrate that the assessee has purchased a plot of land in Village Malwani, which is in “no development zone” which has resulted in substantially low purchase consideration as against the stamp duty value determined considered by the stamp duty authorities. It was submitted that the said agreement is germane to the issue under consideration and on perusal thereof, the AO would appreciate the background on account of which the assessee has purchased the said plot of land at a lower consideration. It was accordingly submitted that the assessee be Printed from counselvise.com 4 ITA No. 3961/Mum/2025 allowed to place on record the said purchase agreement and the matter may be remanded back to the file of the AO to allow one more opportunity to the assessee. It was also submitted by the ld AR that the assessee will duly attend to the proceedings and file any further information/documentation as so sought by the AO and shall not seek any un-necessary adjournments in the matter and will ensure in timely completion of the assessment proceedings. It was accordingly submitted that in the interest of substantial justice, the assessee be allowed to place on record purchase agreement and matter may be remanded back to the file of the AO. 7. Per contra, the Ld.DR is heard, who has submitted that the assessee has been provided sufficient opportunity by the AO as well as by the Ld.CIT(A) and at the same time, given that no findings have been recorded on merits of the case, didn‟t specifically objected where the purchase agreement is brought on record and the matter may be remanded back to the file of the AO for necessary verification and examination. 8. We have heard the rival contentions and perused the material available on record. We find that the assessee has explained the reasons for non-compliance to the notices before the AO and Ld.CIT(A) and has come forward with the requisite purchase agreement by virtue of which the impugned transaction was undertaken at a stated value lower than the stamp duty as so computed by the stamp duty authorities. The assessee has also put forth the necessary explanation for the lower stated consideration which needs to be verified and examined. The same demonstrate the seriousness on the part of the assessee to prosecute the present matter and therefore, considering the fact that the subject agreement and the contents thereof are germane to the matter under consideration, we allow the assessee‟s prayer for Printed from counselvise.com 5 ITA No. 3961/Mum/2025 admittance of the said agreement on record and the matter is remanded to the file of the AO for examination of the same, calling for the report from the DVO and to decide the matter afresh as per law after providing reasonable opportunity to the assessee. 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 08-08-2025 Sd/- Sd/- (JUSTICE (RETD.) C.V. BHADANG) PRESIDENT (VIKRAM SINGH YADAV) ACCOUNTANT MEMBER Mumbai, Date: 08-08-2025 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, ITAT, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai Printed from counselvise.com "