M/S. RAJESH AUTO MERCHANDISE PVT. LTD., ,KOLKATA V. DCIT, CENTRAL CIRCLE 4(3), , KOLKATA

ITA 1054/KOL/2025

AI Insights

This case involves an appeal by M/s Rajesh Auto Merchandise Pvt. Ltd. against the order of the Commissioner of Income-tax (Appeals), Kolkata-27, which affirmed the addition of \\u20b95,03,71,311 as made by the AO under section 56(2)(x) of the Income Tax Act. The primary contention was that the addition was made without referring the issue to the DVO for a proper valuation of the property, which the assessee argued was against the provisions of the Act. The Tribunal agreed with the assessee's argument and restored the issue to the AO for a de novo assessment after obtaining a valuation report from the DVO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 776486 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2025
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2021-2022
• Appeal Filed On: 16-05-2025
• Laws Referred To: Income Tax Act
• Court: TRIBUNAL
• Department Lawyers: S.B. CHAKRABORTHY
• Assessee Lawyers: S JHAJHARIA
• Keywords: Valuation report; Value adopted by valuation officer

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRIPRADIP KUMAR CHOUBEY, JM ITA No.1054/KOL/2025 (Assessment Year:2021-22) M/s Rajesh Auto Merchandise Pvt. ltd. SalarpuriaJajodia @ CO.7, Chittaranjan Avenue, Kolkata-700069, West Bengal Vs. DCIT, Central Circle 4(3) Ayakar Bhawan Poorva, 110, Shantipally, E.M. Bypass, Kolkata-700107, West Bengal (Appellant) (Respondent) PAN No. AACCR9920R Assessee by : Shri S Jhajharia, AR Revenue by : Shri S.B. Chakraborthy, DR Date of hearing: 10.09.2025 Date of pronouncement: 15.09.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the ld. Commissioner of Income-tax (Appeals), Kolkata-27, (hereinafter referred to as the “Ld. CIT(A)”] dated 19.03.2025 for the AY 2021-22. 02. The assessee has challenged the order of ld. CIT (A) affirming the addition of ₹5,03,71,311/- as made by the ld. AO u/s 56(2)(x) of the Act without referring the issue to the District Valuation Officer (DVO). 03. At the outset, the ld. Counsel for the assessee pointed out that the addition made by the ld. AO without referring the issue to the DVO for valuation of the property and the addition was made u/s 56(2)(X) of the Act, which is wrong and against the provisions of the Act. Accordingly, the ld. Counsel for the assessee prayed before the bench Printed from counselvise.com Page | 2 ITA No.1054/KOL/2025 M/s Rajesh Auto Merchandise Pvt. ltd; A.Y. 2021-22 that the issue may be restored to the file of the ld. AO with a direction to frame the assessment denovo after obtaining a valuation report from the DVO and after granting reasonable opportunity of hearing to the assessee. The ld. DR did not oppose the argument of the ld. AR that the addition was made u/s 56(2)(x) of the Act, without valuation report from the District Valuation Officer (DVO). Consequently, we restore the issue to the file of the ld. AO to decide the same afresh after obtaining a DVO report and after affording a reasonable opportunity of hearing to the assessee. The appeal is partly allowed for statistical purposes. 04. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 15.09.2025. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated:15.09.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. Printed from counselvise.com "