SHRI DARSHAN KUMAR,DELHI V. ITO, WARD 61(1), DELHI

ITA 7445/DEL/2025

AI Insights

The case involves an appeal by the assessee, Darshan Kumar, against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of Rs.14,50,000 under the head of Capital Gains for the Assessment Year 2017-18. The assessee had sold a residential plot for Rs.8,00,000, significantly lower than the circle rate of Rs.22,50,000. The Assessing Officer treated the circle rate as the fair market value and added Rs.14,50,000 as capital gains. The Tribunal found that the Assessing Officer did not consider the valuation report from a government-approved valuer nor wait for the valuation report from the District Valuation Officer, which was still pending. The Tribunal decided to set aside the CIT(A)'s order and remand the matter back to the Assessing Officer for a fresh assessment with proper valuation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 844781 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 18-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KESHAV KISHORE ANAND
• Assessee Lawyers: S PRABHJOT SINGH ARORA; SUMIT KAPOOR
• Keywords: Set aside; Sale consideration of property below Jantri Value; Fair market value; Period of limitation; Capital Gains; Valuation report; Time period of passing order; Value adopted by valuation officer
• Section: 50C

Judgement Text

"आयकर अपीलीय अधिकरण धिल्ली पीठ “एस एम सी”, धिल्ली श्री धिकास अिस्थी, न्याधयक सिस्य IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.7445/धिल्ली/2025 (नि.व. 2017-18) ITA No. 7445/DEL/2025 (A.Y.2017-18) Darshan Kumar, Shop No. 2377B, Tri Nagar, New Delhi 110035 PAN: AASPK-2128-D ...... अपीलार्थी/Appellant बिाम Vs. Income Tax Officer, Ward-61(1), Delhi ..... प्रनिवादी/Respondent अपीलार्थी द्वारा/Appellant by : S/Shri Prabhjot Singh Arora & Sumit Kapoor, Chartered Accountants प्रधििािीद्वारा/Respondent by : Shri Keshav Kishore Anand, Sr. DR सुिवाई की निथर्थ/ Date of hearing : 17/12/2025 घोषणा की निथर्थ/ Date of pronouncement : 16/03/2026 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 11.09.2025, for Assessment Year 2017-18. 2. The assessee in appeal has assailed the order of CIT(A) in confirming addition of Rs.14,50,000/- under the head Capital Gains. 3. Shri Prabhjot Singh Arora, appearing on behalf of the assessee submits that during the period relevant to assessment year 2017-18, the assessee sold immovable property for sale consideration of Rs.8,00,000/-, as against the circle rate of Rs22,50,000/-. The assessee had purchased said immovable property (a residential plot) for Rs.4,60,000/-. The assessee offered Rs.3,40,000/- as Long-Term Printed from counselvise.com 2 ITA No.7445/Del/2025 (AY 2017-18) Capital Gain (LTCG) in the return of income AY 2017-18. The Assessing Officer (AO) took circle rate as the fair market value of property and made addition of Rs.14,50,000/- as capital gains. The ld. AR of the assessee stated that the assessee had placed on record Valuation Report from the Govt. approved Valuer. The AO neither considered the said Valuation Report nor waited for the Valuation Report from the DVO. The ld. AR pointed that the AO while passing the Draft Assessment Order dated 26.03.2022 has observed that reference has been made to Valuation Unit for valuation of property, the said report is awaited. Since, limitation period for passing the assessment order was approaching, the AO without further waiting for Valuation Report made addition of Rs.14,50,000/-. The CIT(A) upheld the addition made by the AO. The ld. AR thus, prayed for deleting the addition and accepting the Valuation Report furnished by the assessee for determining the Capital gain on sale of immovable property. 4. Per contra, Shri Keshav Kishore Anand representing the department reiterated findings of the CIT(A) and prayed for dismissing appeal of the assessee. 5. Both sides heard, orders of the authorities below examined. The short issue in present appeal is with regard to Valuation of immovable property sold by the assessee for determining capital gains. The assessee sold a residential plot for Rs.8,00,000/-, whereas the circle rate of property was Rs.22,50,000/-. The AO invoked the provisions of section 50C of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and made addition of Rs.14,50,000/- as capital gains. A perusal of Draft Assessment Order dated 26.03.2022 reveals that the AO had made reference to Valuation Officer, however, till passing of the assessment order no valuation report was received from the DVO. Considering entire facts of the case, I deem it appropriate to restore the issue back to the AO for denovo assessment Printed from counselvise.com 3 ITA No.7445/Del/2025 (AY 2017-18) after obtaining a report from the DVO with regard to Fair Market Value of immovable property sold by the assessee or the AO may considered valuation report from the Govt. approved valuer furnished by the assessee. 6. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on Monday the 16th day of March, 2026. Sd/- Sd/- (VIKAS AWASTHY) न्यानयक सदस्य/JUDICIAL MEMBER धिल्ली/Delhi, ददिांक/Dated 16/03/2026 NV/- प्रतिलिपि अग्रेपििCopy of the Order forwarded to : 1. अपीलार्थी/The Appellant , 2. प्रनिवादी/ The Respondent. 3. The PCIT/CIT(A) 4. ववभागीय प्रनिनिथि, आय.अपी.अथि., दिल्ली /DR, ITAT, धिल्ली 5. गार्ड फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "