KALABHAI KARSHANBHAI PATEL,BANASKANTHA V. THE ITO, WARD-3, PALANPUR

ITA 11/AHD/2025

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The case involves Kalabhai Karshanbhai Patel, the appellant, contesting an appellate order from the Commissioner of Income Tax (Appeals)-4, Ahmedabad, which arose from a re-assessment order under Section 143(3) r.w.s. 147 of the Income-Tax Act, 1961, for the Assessment Year 2014-15. The primary contention was regarding the addition made under section 50C of the Act, which pertained to the valuation of property for capital gains tax. The appellant argued that the entire addition under section 50C made in his hands was against the provisions of law, as he is a co-owner of the property. The Tribunal noted a significant delay in filing the appeal, attributed to miscommunication by the appellant's Chartered Accountant, and decided to condone the delay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774945 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 02-01-2025
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARGOVIND SINGH
• Assessee Lawyers: HIREN TRIVEDI
• Keywords: Reassessment proceedings; Sale consideration of property below Jantri Value; Cost of acquisition; Capital Gains; Valuation report
• Section: 143(3); 50C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER I.T.A. No. 11/Ahd/2025 (Assessment Year: 2014-15) Kalabhai Karshanbhai Patel, Laxmi Complex, Railway Station Road, Deodar, Banaskantha, Palanpur-3853330 [PAN : AQIPP 6504 C] Vs. Income-Tax Officer, Ward-3, Palanpur (Appellant) .. (Respondent) Assessee by : Shri Hiren Trivedi, AR Revenue by: Shri Hargovind Singh, Sr DR Date of Hearing 30.07.2025 Date of Pronouncement 02.09.2025 O R D E R PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER : This appeal is filed by the Assessee as against the appellate order dated 20.08.2019 passed by the Commissioner of Income Tax (Appeals)-4, Ahmedabad (hereinafter referred to as “CIT(A)”), arising out of the re-assessment order passed under Section 143(3) r.w.s. 147 of the Income-Tax Act, 1961 (hereinafter referred to as “the Act”), relating to the Assessment Year 2014-15. 2. The Registry has noted that there is a delay of 1890 days in filing the above appeal by the assessee. The assessee, by way of a notarized affidavit, explained that he has entrusted the matter to a Chartered Accountant and he has outsourced the filing of appeal before the CIT(A) to another Chartered Accountant at Ahmedabad. Whereas, the Ld. CIT(A) partly allowed the appeal by directing the Assessing Officer to adopt the DVO’s valuation for the purpose of determining the value of Printed from counselvise.com ITA No. 11/Ahd/2025 Kalabhai Karshanbhai Patel Vs. ITO Asst. Year : 2014-15 - 2– the property u/s 50C of the Act in the case of another co-owner. However, this order was not communicated by the Chartered Accountant, which has resulted in a huge delay of filing the above appeal. Thus, the assessee requested to condone the delay and submitted that since the assessee is one of the co-owners of the property, the entire addition u/s 50C of the Act made in the hands of the assessee is against the provisions of law and assessee’s proportionate share of income is to be assessed and taxed. 3. Per contra, Ld. Sr. DR, appearing for the Revenue, strongly opposed the condonation of huge delay in filing the appeal. 4. We have considered the rival submissions and perused the material available on record. The grounds of appeal raised by the assessee are as follows:- “1. In law and in the facts and circumstances of the case of the Appellant, the order u/s 250 of the Income Tax Act 1961 without considering the submissions made by appellant is bad in law and deserves to be cancelled. 2. In law and on the facts and in the circumstances of the case, the ld. CIT (Appeal) NFAC has erred in not appreciating the fact that reassessment proceedings for A.Y 2014-15 were totally without jurisdiction and bad in law. 3. In law and in the facts and circumstances of the case of the Appellant, the Ld. CIT(A) has confirmed the addition to the tune Rs. 40,88,000/- under section 50C of the Income Tax Act, 1961. 4. The appellant craves leave to add to alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal.” Printed from counselvise.com ITA No. 11/Ahd/2025 Kalabhai Karshanbhai Patel Vs. ITO Asst. Year : 2014-15 - 3– 5. The Ld. Counsel, appearing for the assessee, considering the huge delay in filing the appeal, submitted before us, raising Ground No.3, in setting aside the matter to the file of Jurisdictional Assessing Officer to recompute 50C valuation, based on the DVO’s valuation report in the case of other co-owner and also submitted before us calculation of capital gains in the case of the assessee with cost of indexation. Considering the above submissions of the assessee, we note that the Assessing Officer passed the assessment order making entire addition u/s 50C as assessee’s share and without calculating the cost of acquisition. Therefore, we hereby condone the delay in filing the appeal with the direction to the Assessing Officer to rework the computation of capital gains for determining the valuation u/s 50C of the Act by adopting the DVO’s value determined in the case of other co-owner and also the cost of acquisition of the property, in accordance with the law, by giving proper opportunity of hearing to the assessee. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 02.09.2025 Sd/- Sd/- Sd/- Sd/- (DR. B.R.R. KUMAR) (T.R. SENTHIL KUMAR) VICE-PRESIDENT JUDICIAL MEMBER Ahmedabad; Dated 02/09/2025 **btk Printed from counselvise.com ITA No. 11/Ahd/2025 Kalabhai Karshanbhai Patel Vs. ITO Asst. Year : 2014-15 - 4– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "