JUDE ANTONY DURAI RAJ,TIRUNELVELI V. ACIT, CIRCLE-1, TIRUNELVELI

ITA 3585/CHNY/2025

AI Insights

The case involves an appeal by Jude Antony Durai Raj against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of income by the Assessing Officer. The dispute centered on the sale of immovable property, where the assessee reported a lower sale consideration in his tax return compared to the stamp duty valuation. The Assessing Officer treated the difference as income under section 50C and later under section 43CA, leading to an addition to the assessee's income. The Tribunal noted the assessee's failure to provide adequate explanation during the initial appeal and decided to remand the case for a fresh examination.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834176 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2019-2020
• Appeal Filed On: 28-11-2025
• Other Referred Cases: Sai Bhargavanth Infra v. ACIT [2022] (Pune  Trib)
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: Y. SUDARSHAN
• Assessee Lawyers: S. GIRISH KUMAR
• Keywords: Condonation of delay; Business income; Sale consideration of property below Jantri Value; Capital Gains
• Section: 43CA; 44AD; 50C

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी इंट ूरी रामाराव, लेखा सद˟ एवं ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ क े समƗ । Before Shri Inturi Rama Rao, Accountant Member & Shri S.S. Viswanethra Ravi, Judicial Member आयकर अपील सं./I.T.A. No.3585/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2019-20 Jude Antony Durai Raj, B-67, 17th Cross Street, Maharaja Nagar, Tirunelveli 627 011. [PAN: ADDPJ2991H] Vs. The Assistant Commissioner of Income Tax, Circle 1, Tirunelveli. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri S. Girish Kumar, Advocate ŮȑथŎ की ओर से/Respondent by : Shri Y. Sudarshan, JCIT सुनवाई की तारीख/ Date of hearing : 27.01.2026 घोषणा की तारीख /Date of Pronouncement : 02.02.2026 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 31.07.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2019-20. 2. We find that this appeal is filed with a delay of 59 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, in Printed from counselvise.com I.T.A. No.3585/Chny/25 2 the interest of justice, we condone the delay and admit the appeal for adjudication. 3. At the outset, the Assessing Officer noted that the assessee sold immovable property for an amount of ₹.26,50,000/- by cash, but, however, in the return of income the assessee disclosed the sale consideration at ₹.3,02,155/-, whereas, as per the information with the Assessing Officer, the market value of the property for stamp duty purposes is at ₹.29,70,000/-. Therefore, the Assessing Officer treated difference between valuation of property for stamp duty purpose and actual consideration i.e., at ₹.26,67,845/- as assessee’s income under section 50C of the Act, which was disclosed by the assessee, called for explanation from the assessee through SCN. The assessee explained that he is qualified civil engineer in Real Estate business of buying, selling and construction and obtained LPA Registration [Registration No. 0026/2011] & Tirunelveli Corporation License [License No. 0088/2011/TN1 dated 14.11.2010], therefore, the sale receipt is his business receipt instead of capital gains. As per section 43CA of the Act, the assessee offered 8% of full consideration of ₹.29,70,000/- as income under section 44AD of the Act. However, the Assessing Officer, considering the Pune Bench decision in the case of Sai Printed from counselvise.com I.T.A. No.3585/Chny/25 3 Bhargavanth Infra v. ACIT [2022] (Pune – Trib), treated the difference between the sale value as per stamp duty valuation and actual sale consideration at ₹.26,50,000/- as assessee’s income under section 43CA of the Act and added to the total income of the assessee. On appeal, since the assessee could not file any explanation in support of his case, the ld. CIT(A) dismissed the appeal and confirmed the addition made by the Assessing Officer. 4. The ld. AR Shri S. Girish Kumar, Advocate drew our attention to para 4.3 of the assessment order and submits that the assessee furnished explanation in response to the SCN issued by the Assessing Officer. However, due to circumstances beyond his control, the assessee did not file the explanation against the hearing notices issued by the ld. CIT(A) and prayed to remand the matter to the file of the ld. CIT(A) to afford one more opportunity to the assessee to substantiate his case before the ld. CIT(A). The ld. DR Shri Y. Sudarshan, JCIT vehemently opposed the submissions of the ld. AR. Considering the submissions of the ld. AR and the ld. DR, in the interest of justice, we deem it proper to remand the matter to the file of the ld. CIT(A) to afford one more opportunity to the assessee to substantiate his case and adjudicate the issue on merits in accordance with law. It is open to the assessee to raise Printed from counselvise.com I.T.A. No.3585/Chny/25 4 any ground before the ld. CIT(A) for adjudication. Thus, the grounds raised by the assessee are allowed for statistical purposes. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 02nd February, 2026 at Chennai. Sd/- Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 02.02.2026 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "