INDRONIL GHOSH,MADHEPURA V. ITO, WARD-N 3 (5), SAHARSA

ITA 504/PAT/2025

AI Insights

The case involves Indronil Ghosh, the appellant, contesting an order from the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2016-2017. The primary issue was the failure of the Assessing Officer to refer the matter to the Departmental Valuation Officer as required under section 50C(2) of the Income Tax Act. The assessee also admitted during the appeals that he was not entitled to relief under section 54F as he had not completed the construction of a house within the stipulated period nor deposited the money in the capital gains account. The Tribunal found merit in the assessee's grievance regarding the non-referral to the DVO and thus set aside the CIT(Appeals) order, directing a referral to the DVO.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 845879 (ITAT-MISC)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Patna
• Assessment Year: 2016-2017
• Appeal Filed On: 19-11-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Sale consideration of property below Jantri Value; Capital Gains
• Section: 54F

Judgement Text

" ITA No. 504/PAT/2025 (A.Y. 2016-2017) Indronil Ghosh 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-PATNA ‘e-COURT’, ‘SMC’ BENCH, KOLKATA [Hybrid Court Hearing] Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Rakesh Mishra, Accountant Member I.T.A. No. 504/PAT/2025 Assessment Year: 2016-2017 Indronil Ghosh,…………..…..……………..……..Appellant Dr. S.C. Ghosh Lane, Azad Nagar, Ward No. 9, Nagar Parishad, Madhepura-852113, Bihar [PAN:AIQPG4369J] -Vs.- Income Tax Officer,…………………………....Respondent Ward-3(5), Saharsa, Near Koshi Colony, Chowk, Ganga Jala, Saharsa-852201, Bihar Appearances by: Shri Abhi Sarkar, Advocate, appeared on behalf of the assessee Shri Manab Adak, JCIT, appeared on behalf of the Revenue Date of concluding the hearing: February 26, 2026 Date of pronouncing the order: March 27, 2026 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), Printed from counselvise.com ITA No. 504/PAT/2025 (A.Y. 2016-2017) Indronil Ghosh 2 National Faceless Appeal Centre (NFAC), Delhi dated 24th September, 2025 passed for Assessment Year 2016-17. 2. The only grievance of the assessee is that the ld. Assessing Officer has not referred the matter to the Departmental Valuation Officer as per the provisions of section 50C(2) of the Act. The ld. Counsel for the assessee submitted that the ld. Assessing Officer has not given proper opportunity to the assessee to substantiate his case. Before the ld. CIT(Appeals) also, the ld. Counsel for the assessee has admitted that the assessee is not entitled to claim relief under section 54F of the Act since the assessee has not completed the construction of house within the stipulated period and the money was not deposited in the capital gains account. 3. Considering the facts and circumstances of the case and the material available on record, we find that there is no reference to the Departmental Valuation Officer as per provisions of section 50C(2) of the Act. Therefore, we are of the view that it is a fit case to set aside the order passed by the ld. CIT(Appeals). It is a fit case to refer the matter to the DVO. The ld. Assessing Officer is directed to refer the matter to the DVO and after providing reasonable opportunity of being heard to the assessee to pass appropriate order on merit. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the ld. Assessing Officer failing which the ld. Assessing Officer shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the Printed from counselvise.com ITA No. 504/PAT/2025 (A.Y. 2016-2017) Indronil Ghosh 3 grounds raised by the assessee in the appeal are partly allowed for statistical purposes. 4. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 27/03/2026. Sd/- Sd/- (Rakesh Mishra) (Duvvuru RL Reddy) Accountant Member Vice-President Kolkata, the 27th day of March, 2026 Copies to :(1) Indronil Ghosh, Dr. S.C. Ghosh Lane, Azad Nagar, Ward No. 9, Nagar Parishad, Madhepura-852113, Bihar (2) Income Tax Officer, Ward-3(5), Saharsa, Near Koshi Colony, Chowk, Ganga Jala, Saharsa-852201, Bihar (3) CIT(Appeals), NFAC, Delhi; (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha Printed from counselvise.com "