GUNJAN SINGH,GHAZIABAD V. INCOME TAX OFFICER, WARD 2(2)(1), FIROZABAD

ITA 416/AGR/2025

AI Insights

Gunjan Singh appealed against the order of the National Faceless Appeal Centre (NFAC), which sustained the addition of Rs. 12,76,000 to his income for the Assessment Year 2022-23. The addition was based on the difference between the stamp duty valuation of a property purchased by Singh and the actual amount paid. The Tribunal found that the AO had not referred the valuation issue to the DVO, despite the assessee's objection, and thus remitted the matter back to the AO for a proper valuation assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785583 (ITAT-AGRA)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2022-2023
• Appeal Filed On: 25-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SRIVASTAVA
• Assessee Lawyers: SURESH K. GUPTA
• Keywords: Fair market value
• Section: 142(1); 56(2)(vii)(b)

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “SMC”: AGRA SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND BEFORE SHRI SUNIL KUMAR SINGH, ACCOUNTANT MEMBER (Through virtual hearing) ITA No.416/AGR/2025 (Assessment Year:2022-23) Gunjan Singh, A-2/502, Krishna Apara Garden, Indirapuram, Ghaziabad Vs. Income Tax Officer, Ward-2(2)(1), Ghaziabad (Appellant) (Respondent) PAN:EUQPS3688G Assessee by : Shri Suresh K. Gupta, CA Revenue by: Shri Shailendra Srivastava, Sr. DR Date of Hearing 15/10/2025 Date of pronouncement 30/10/2025 O R D E R PER SHRI S. RIFAUR RAHMAN: 1. This appeal has been filed by the Assessee against the order of the ld. National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT(A)”, for short], dated 25.06.2025 for Assessment Year 2022-23. 2. Brief fact of the case are that the case of the assessee was selected for scrutiny under CASS for scrutiny to very “information” in verification cases uploaded through “CRIU”. The assessee filed his return of income declaring total income of Rs. Nil. The assessee is engaged in retail trading business in franchisee name of Patanjali Ayurveda under the store name Nelkahantha Ayurveda. Accordingly, notices u/s 143(2) and several notices u/s 142(1) were issued to the assessee are tabulated by the AO at page 2 of the Assessment Order. Further, part compliances were made by the assessee. Printed from counselvise.com ITA No.424/AGR/2025 Shri Indra Scientific Glass Works Page | 2 3. The AO received informed that during the course of search action of Gaursons Group on 02.03.2022, statement was recorded of Smt Isha Banyal an employee of the above said group and Shri Anuj Kansal, internal auditor of Gaursons Promoters recorded u/s 132(4) of the Act on 02.03.2022, it was revealed that assessee had made cash transaction with the above said builder to the extent of Rs. 79,04,112/- for the purpose of property. During the course of assessment proceedings, the assessee submitted along with purchase deed and stated that during the year he had purchased the following two immovable properties:- Date of submission Property Description Amount 06.10.2023, 01.02.2024, 29.02.2024, 12.03.2024 and 15.03.2024 I.Shop No. GF-01, 14th Avenue High street,Gaur City-2, Plot No. GH- 03,Sector-16C,Greter Noida. 1. Agriculture Land Gata No. 487 at Villa Sunpedath-SKD, Dist-BSR UP. Rs.80,41,400/- (Sale consideration of Rs.76,68,000/- + Stamp duty of Rs. 3,73,400/-) Rs. 36,00,000/- 4. The source was explained by the assessee as loan from Axis Bank to the extent of Rs. 25 lakhs and borrowed money from her father Indrajraj Singh to the extent of Rs. 50 lakhs and balance were from her personal savings. With regard to payments towards property it was submitted that 21 lakhs through personal savings and Rs. 15 lakhs were borrowed from her relative Pratibha Singh and filed the confirmation letters and copies of bank statement of loans were furnished. 5. The ld AO observed that assessee has purchased one more immovable property of 48,76,000/- registered with sub-registrar office, Skihandarabad, Bulandshhar for the value of Rs. 48,76,000/-. After considering the submission and material available on record, the ld AO proceeded to make the addition of Rs. 12,76,000/-. Printed from counselvise.com ITA No.424/AGR/2025 Shri Indra Scientific Glass Works Page | 3 6. Aggrieved with the above order, the assessee preferred an appeal before the ld CIT(A) and filed detailed submission and following documents in the form of Paper Book, which are as under:- “i) Copy of e-filed ITR-V dated 13.10.2022 u/s 139(1) of IT Act ii) Copy of computation of Income iii) Copy of audited financial statements iv) Copy of notice dated 01.06.2023 issued u/s 143(2) of IT Act v) Copy of notice dated 21.09.2023 issued u/s 142(1) of IT Act vi) Copy of notice dated 06.10.2023 issued u/s 142(1) of IT Act vii) Copy of notice dated 30.01.2024 issued u/s 142(1) of IT Act viii) Copy of notice dated 16.02.2024 issued u/s 142(1) of IT Act ix) Copy of notice dated 06.03.2024 issued u/s 142(1) of IT Act x) Copy of show cause notice dated 12.03.2024 xi) Copy of reply dated 06.10.2023 along with sale deed of purchase of agricultural land xii) Copy of reply dated 29.02.2024 xiii) Copy of reply dated 12.03.2024 7. After considering the details submitted by the assessee, the ld CIT(A)sustained the addition. 8. Aggrieved, the assessee is in appeal before us. At the time of hearing the ld AR submitted that the assessee has purchased an agricultural land at Bulandshhar for a consideration of Rs. 36 lakhs whereas the ld AO on perusal of the purchase deed registered on 24.01.2022 on the basis of stamp duty valuation which are recorded at Rs. 48,76,000/- and the stamp duty paid by the assessee at Rs. 2,33,800/-. Accordingly, he proceeded to determine the fair market value at Rs. 48,76,000/- and difference was added u/s 56(2)(vii)(b) of the Act. He submitted that the above said stamp duty valuation was deposited by the assessee and the ld AO has not referred the same to the Departmental Valuation Officer (DVO) and ld AO is not the competent to determine the valuation. He prayed that the same Printed from counselvise.com ITA No.424/AGR/2025 Shri Indra Scientific Glass Works Page | 4 may be referred back to the AO to determine the fair market value of the land. 9. On the other hand the ld DR did not object to the above proposition. 10. Considered the rival submissions and materials available on record, we observe that the assessee has purchased agricultural land at Bulandshhar, Uttar Pradesh for a consideration of Rs. 36 lakhs whereas, the stamp duty was valued at Rs. 48,76,000/- and accordingly paid the stamp duty. The assessee has not explained the reasons for the same before the lower authorities and since the issue involved is the difference of valuation of actual payment and stamp duty valuation. In our considered view, the lower authorities should have referred the issue to the DVO and they failed to do the same when the assessee filed a detail with the objection before them. Therefore, we are inclined to remit the issue back to the file of the AO with a direction to refer the case to DVO to determine the actual fair market value of the land and accordingly, assess the income as per law. 11. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 30/10/2025. -Sd/- -Sd/- (SUNIL KUMAR SINGH) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30/10/2025 A K Keot Copy forwarded to 1. Applicant Printed from counselvise.com "