STAR INTERIORS PVT LTD,NEW DELHI V. DCIT, CIRCLE-22(2), NEW DELHI (NATIONAL FACELESS APPEAL CENTRE (NFAC), DELHI), DELHI

ITA 4915/DEL/2024

AI Insights

The case involves Star Interiors Pvt. Ltd., which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the assessment year 2018-19. The primary issue was the addition of Rs. 25,10,000 to the assessee's income, which was the difference between the sale price of a property and its circle rate, under section 50C of the Income Tax Act. The Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) (CIT(A)) had both decided the matter ex-parte, leading to the assessee's appeal to the Tribunal. The Tribunal, considering the circumstances, decided to give the assessee another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471504 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Assessee Lawyers: MANEESH UPNEJA; SANJU KUMARI
• Keywords: Sale consideration of property below Jantri Value; Capital Gains
• Section: 143(3); 50C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘G’: NEW DELHI BEFORE SHRI YOGESH KUMAR US, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.4915/Del/2024 [Assessment Year: 2018-19] Star Interiors Pvt. Ltd. 106-107 Mamram Majesty Mall, Plot No.2, Road No.43, Guru Harkishan Marg, Pitampura, New Delhi-110034 Vs DCIT, Circle-22(2), (National Faceless Appeal Centre), C.R. Building, Delhi PAN-AAACS0036P Assessee Revenue Assessee by Shri Maneesh Upneja, CA & Ms. Sanju Kumari, Adv. Revenue by Shri Sahil Kumar Bansal, Sr. DR Date of Hearing 25.02.2025 Date of Pronouncement 28.02.2025 ORDER PER BRAJESH KUMAR SINGH, AM, This appeal by the assessee is directed against the order of National Faceless Appeal Centre, Delhi, dated 29.08.2024, passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’) pertaining to Assessment Year 2018-19. 2. Grounds of appeal raised by the assessee are as under:- “Ground No. 1 :- That on the facts and in law, the order dt. 02.06.2021 as passed by The Additional/Joint / Deputy / Assistant commissioner of Income Tax / Income Tax Officer, National Faceless Assessment Centre [hereinafter referred as \"The Ld. A.O.\" or \"The Ld. Assessing Officer\"] u/s 143(3) r.w.s. 144B of the Income-tax Act, 1961 [hereinafter referred as \"The Act\"] and as upheld by the Commissioner of Income - Tax (Appeals), National Faceless Appeal Centre, Income Tax 2 ITA No.4915/Del/2024 Department [hereinafter referred as \"The Ld. CIT - (A)\"] vide order dt. 29.08.2024 is bad in law and void ab initio. Ground No. 2 :- That on the facts and in law, the Ld. CIT(A) erred in upholding an addition to the tune of Rs. 25,10,000/-. Ground No. 3 :- That on facts and in law, the Ld. AO as well as Ld. CIT(A) erred in invoke the provision section 50C of the Income Tax Act without followed the mandatory requirement to refer the matter for fair valuation to immovable assets to (DVO) Department valuation officer. 3. Brief facts of the case:- The AO had information that the assessee had sold a property being shop no.1F-107, plot No.2 LSC road no.43, Guru Harikishan Marg, Pitampura, Delhi for Rs.25,50,000/- to Shri Abid Ali and Ms. Tarannum. Further, the AO had information that the circle rate of the said property was Rs.50,60,000/-. The AO gave an opportunity to the assessee but according to the AO, the assessee did not submit any explanation about the above discrepancy. Accordingly, the AO added the difference of Rs.25,10,000/- (Rs.50,60,000-Rs.25,50,000/-) to the total income. 4. Aggrieved with the said order, the assessee filed an appeal before the Ld. CIT(A), where again, the assessee did not appear and the Ld. CIT(A) dismissed the appeal of the assessee on the ground that the assessee has not submitted any document in support of its contention as to why section 50C was not applicable to it. 5. Aggrieved with the said order of the ld. CIT(A), the assessee is in appeal before us. 6. The Ld. AR submitted that both the AO and the ld. CIT(A) have decided the matter ex-parte and humbly requested that the assessee may be given one more opportunity to explain its case before the AO as in this 3 ITA No.4915/Del/2024 case the provisions of sub-section-2 of section 50C was applicable and the assessee will file the necessary documents before the AO. 7. On the other hand, the ld. Sr. DR supported the orders of the authorities below. 8. We have heard both the parties and perused the materials available on record. It is seen that in ground no.1, the assessee submits that the property in question was less than the circle rate. However, no submissions were furnished by the assessee before the Ld. CIT(A). In view of the fact, the assessee has appeared for the first time before the Tribunal, taking a liberal view and to give one more opportunity to the assessee, the assessment is set-aside and restored to the file of the AO to for de novo determination of capital gains u/s 50C of the Act after giving due opportunity to the assessee in accordance with law. 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 28th February, 2025. Sd/- Sd/- [YOGESH KUMAR US] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 28.02.2025 f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Assessee 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi, "