TIRUCHANGODU RAMASAMY KHANNAIYANN SARASUWATHI,COIMBATORE V. DCIT, CENTRAL CIRCLE-1, COIMBATORE

SA 138/CHNY/2025

AI Insights

The case involves a Stay Petition filed by the assessee, Tiruchangodu Ramasamy, against an outstanding demand of Rs.1,12,07,433 for the assessment year 2014-15. The demand arose from additions made under sections 56(2)(vii) and 50C of the Income Tax Act, which were sustained by the CIT(A). The assessee contested that the additions were made based on the guideline value of the property without a proper valuation report from the DVO, which was still awaited at the time of the assessment. The tribunal, after considering the submissions and the available DVO report, found a prima-facie case in favor of the assessee and decided to stay the balance demand.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826607 (ITAT-CHENNAI)
• Duration Of Justice: 7 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 29-12-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: SURAJ NAHAR; C.A
• Keywords: Sale consideration of property below Jantri Value; Valuation report; Value adopted by valuation officer
• Section: 50C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI BEFORE HON’BLE SHRI GEORGE GEORGE K, VICE PRESIDENT AND BEFORE HON’BLE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SA No.138/Chny/2025, Assessment Year: 2014-15 (ITA No.3135/Chny/2025, Assessment Year: 2014-15) Tiruchangodu Ramasamy, Khannaiyann Sarasuwathi, No.67, Avarampalayam Road, K.R.Puram, Coimbatore, Tamil Nadu-641 006. [PAN: ALTPS9452J] Deputy Commissioner of Income Tax, Central Circle-1, Coimbatore. Appellant Respondent Assessee by : Mr.Suraj Nahar, C.A, Revenue by : Ms.Gouthami Manivasagam, JCIT Date of Hearing : 02.01.2026 Date of Pronouncement : 05.01.2026 O R D E R PER INTURI RAMA RAO, A.M : The present Stay Petition is filed by the assessee seeking stay of outstanding demand of Rs.1,12,07,433/- for the assessment year 2014- 15 in ITA No.3135/Chny/2025. 2. The learned Authorised Representative submits that the demand in question had arisen on account of CIT(A) sustaining the addition made on account of agricultural income of Rs.3,21,569/-, and addition u/s 56(2)(vii) of Rs.3,09,77,310/- and addition u/s 50C of the Act. It is submitted that the AO made the addition u/s 56(2)(vii) based on the guidelines value of the property without waiting for the report from the valuation cell. It is further submitted that even the CIT(A) passed the Printed from counselvise.com ITA No.138/Chny/2025 Page - 2 - of 3 impugned order without taking into consideration the report of DVO. Thus, he submits that the petitioner has strong prima-facie case in favour of the petitioner since he already paid more than 48% of the original demand, the balance demand may be stayed. On the other hand, the learned Sr.DR had opposed the above submissions. 3. We heard the rival submissions and perused the material on record. The demand in question had arisen on account of addition made u/s 56(2)(vii) of the Act. The AO chosen to make addition only because the valuation report from DVO was still awaited as on the date of completion of the assessment proceedings. Now the DVO report is very much available. Thus, it appears to us that there is a prima-facie case in favour of the assessee on merits. The assessee had already paid 48% of the original demand. In the circumstances, in our considered opinion, it is a fit case to stay the balance demand. We make it clear that the appellant shall not seek adjournment from hearing the appeal without reasonable and substantial cause. 4. Accordingly, the Stay Petition filed by the assessee stands allowed on the above terms as declared in the open court. Order pronounced on 5th , January-2026 at Chennai. Sd/- Sd/- (GEORGE GEORGE K) Vice president (INTURI RAMA RAO) Accountant Member Printed from counselvise.com ITA No.138/Chny/2025 Page - 3 - of 3 Chennai, Dated: 5th , January-2026. KB/- Copy to: 1. Appellant 2. Respondent 3. CIT - Chennai/Coimbatore/Madurai/Salem. 4. DR 5. GF Printed from counselvise.com "