Jitoo Kumar Shaw, Barrackpore V. I.T.O., Ward - 50(1), Kolkata, Kolkata

ITA 416/KOL/2022

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 8499 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 08-11-2022
• Assessment Year: misc
• Appeal Filed On: 19-07-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Deemed to accrue or arise in india; Set aside

Judgement Text

आयकर अपील य अ धकरण, कोलकाता पीठ ‘‘बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA ी राजेश क ु मार, लेखा सद य एवं ी संजय शमा या यक सद य के सम [Before Shri Rajesh Kumar, Accountant Member & Shri Sonjoy Sarma, Judicial Member] I.T.A. No. 416/Kol/2022 Assessment Year: 2018-19 Jitoo Kumar Shaw (PAN: DBTPS 7343 D) Vs. ITO, Ward-50(1), Kolkata Appellant / (अपीलाथ ) Respondent / ( !यथ ) Date of Hearing / स ु नवाई क$ त&थ 09.11.2022 Date of Pronouncement/ आदेश उ)घोषणा क$ त&थ 15.11.2022 For the Appellant/ नधा /रती क$ ओर से Shri Amit Agarwal, A.R For the Respondent/ राज व क$ ओर से Shri Sudipto Guha, CITDR ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)”] dated 24.06.2022 for the AY 2018-19. 2. The assessee has assailed the order of Ld. CIT(A) which was passed ex-parte without dealing with the merits of the case in liminie. The assessee has also challenged the order of Ld. CIT(A) on the ground that it has erred in upholding the order of AO wherein the addition was made without referring the issue of valuation of immovable property to the DVO in terms of 3 rd proviso to Section 56(2)(x) of the Act and 2 I.T.A. No.416/Kol/2022 Assessment Year: 2018-19 Jitoo Kumar Shaw therefore this is in violation of binding the decision of jurisdictional High Court in the case of Sunil Kumar Agarwal vs. CIT (2015) 372 ITR 83 (Cal). 3. The ld. A.R. therefore submitted that the case of the assessee could not be represented on merit before the Ld. CIT(A) as well as the AO and therefore merits of the case were not considered by the lower authorities. Besides the issue involved in the present case is as regards purchase of property, the stamp value of which was Rs. 35,00,006/- as per the Stamp Valuation Authority , while actual consideration of purchase of property was only 3,75,000/-. Similarly the assessee purchased one from property for Rs. 4,85,000/- stamp value of which was Rs. 36,72,006/-. The Ld. A.R. submitted that the deemed income of R.s 63,12,013/-was added u/s 56(2)(x) of the Act without referring the issue to DVO in terms of 3 rd proviso to Section 56(2)(x) of the Act. The Ld. A.R. further submitted that the ends of justice could be met if the assessee is given one more opportunity to present his case before the AO and the AO is directed to frame the assessment accordingly after getting the property valued from the DVO in terms of ratio laid down by the Hon’ble Calcutta High Court in the Sunil Kumar Agarwal vs. CIT (Supra). 4. The Ld. D.R. on the other hand relied on the authorities below. 5. We have heard the rival submissions and perused the material on record including the impugned order. We find that the Ld. CIT(A) has passed the ex-parte order. Similarly the AO has added the deemed income of Rs. 63,12,012/- u/s 56(2)(x) without referring the issue to the DVO for valuing the properties which were admittedly purchased by the assessee below the stamp value as prescribed by the issuing authority. Under these facts and circumstances, we are of the view that the assessee needs to be given one more opportunity to present his case before the AO on merit so that the principles of natural justice are complied. Accordingly we restore the issue to the file of the AO with the direction refer the issue to the DVO for valuation of property and frame the assessment accordingly after giving a fair opportunity of hearing to the assessee. Accordingly, the appeal is set aside to the file of AO. 3 I.T.A. No.416/Kol/2022 Assessment Year: 2018-19 Jitoo Kumar Shaw 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 15 th November, 2022 Sd/- Sd/- (Sonjoy Sarma /संजय शमा ) (Rajesh Kumar/राजेश क ु मार) Judicial Member/ या यक सद य Accountant Member/लेखा सद य Dated: 15 th November, 2022 SB, Sr. PS Copy of the order forwarded to: 1. Appellant- Jitoo Kumar Shaw, HL-42, BL No. 20, Kankinara, Barrackpore, North 24 Pargana-743126 2. Respondent – ITO, Ward-50(1), Kolkata 3. Ld. CIT(A)-NFAC-Delhi 4. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata