MR. SAGIR ALAM KHAN,KEONJHAR V. INCOME TAX OFFICER, KEONJHAR WARD, , KEONJHAR

ITA 354/CTK/2025

AI Insights

This case involves an appeal by Mr. Sagir Alam Khan against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2017-2018. The primary issues in the appeal were the valuation of a property purchased by the assessee and the treatment of Rs.6 lakhs received as a gift from relatives. The AO had initially treated the differential amount in property valuation as income and the gift as unexplained investment under Sections 56(2)(vii)(b) and 69 of the Income Tax Act, respectively. The Tribunal found that the AO had not revalued the property as requested by the assessee and that the affidavits regarding the gift were not considered by the AO. Consequently, the Tribunal restored the matters to the AO and CIT(A) for fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717330 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 10-06-2025
• Laws Referred To: Section 56(2)(vii)(b) of the Act, Section 69 of the Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIJAY SINGH
• Assessee Lawyers: B.R.PANDA
• Keywords: Condonation of delay; Opportunity of being heard; Unexplained investment; Gift
• Section: 56(2)(vii)(b)

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ुमार, लेखा सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.354/CTK/2025 (नििाारण वर्ा / Assessment Year : 2017-2018) Mr. Sagir Alam Khan, At : Magurgadia, PO: Keonjhargarh Dist : Keonjhar-758001 Vs ITO, Keonjhar Ward, Keonjhar PAN No. : ANVPK 1400 E (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri B.R.Panda, Advocate राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 11/08/2025 घोषणा की तारीख/Date of Pronouncement : 11/08/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 25.10.2024 passed by ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2017-2018. 2. The appeal of the assessee is barred by 161 days. In this regard, the assessee has filed an application for condonation of delay supported with an affidavit stating therein sufficient reasons for delay, which are plausible and not found to be false. Accordingly, delay of 161 days in filing the present appeal by the assessee is condoned and the appeal is admitted for hearing. 3. It was submitted by the ld. AR that the assessee is engaged in the business of footwear. The assessee had purchased a property for Rs.14 Printed from counselvise.com ITA No.355/CTK/2025 2 lakhs whereas the actual value has been shown at Rs.22 lakhs. The AO had treated the differential amount as Rs.8 lakhs as income of the assessee by applying the provisions of Section 56(2)(vii)(b) of the Act. It was further submitted that the AO had treated the amount of Rs.6 lakhs received by the assessee from his relatives and family members for the purpose of the said property as unexplained investment u/s.69 of the Act. It was the submission that in the course of assessment the assessee had submitted that the property could be valued which has not been done by the AO. It was the further submission that in respect of gift of Rs.6 lakhs assessee has provided affidavit before the ld. CIT(A). It was the prayer that the addition made by the AO and confirmed by the ld. CIT(A) may be deleted. 4. In reply, ld. Sr. DR vehemently supported the order of the ld.AO & ld. CIT(A). It was the submission that in respect of value of the property the issue should be restored to the file of AO for valuation by the DVO. It was the further submission that in respect of gift, no details has been produced before the AO. 5. We have considered the rival submissions. A perusal of the assessment order in the present case clearly shows that in para 4.2 at page 3, the AO has extracted the submissions of the assessee and in sub-para 2.2(3) the assessee has requested for revaluation of the said property. As the AO has not done the revaluation, in the interest of justice, the issues in the appeal are restored to the file of AO for readjudication afresh after getting the property valued by the DVO and to examine if there any addition is called for in respect of the said amount of Rs.14 lakhs. In respect of the Printed from counselvise.com ITA No.355/CTK/2025 3 documentary evidence in regard to gift of Rs.6 lakhs, the AO recognizes that the same is as loan whereas the affidavits provided by the assessee shows that the amounts received by the assessee from its family members in the form of gift. It is noticed from the affidavit that the gifts are from his two sons, daughter and wife of the assessee. These affidavits have not been provided before the AO. These fresh evidence have been provided before the ld. CIT(A). This being so, in the interest of justice we are of the view that the issues are required to be restored to the file of ld. CIT(A) to readjudicate afresh after providing adequate opportunity of being heard to the assessee and we do so. 6. In the result, appeal of the assessed is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 11/08/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 11/08/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "