VANRAJSINH D. VAGHELA,AHMEDABAD V. THE ITO, WARD-3(2)(1), AHMEDABAD

ITA 733/AHD/2025

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The case involves Vanrajsinh D. Vaghela, the appellant, who contested the addition of Rs.26,24,684 to his income, which was made by the Assessing Officer under section 50C of the Income Tax Act, 1961. This addition was based on the difference between the sale value of a property as per the sale-deed and its stamp duty value/Collector rate. The appellant argued that the orders from the lower authorities were ex-parte and that he was not adequately served or aware of the proceedings, being a villager unfamiliar with the intricacies of income-tax proceedings. The Tribunal found merit in the appellant's request for a fair hearing and the opportunity to contest the valuation of the property.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779667 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 07-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAKOLI UTTAM GHOSH
• Assessee Lawyers: PARIN S. SHAH
• Keywords: Set aside; Sale consideration of property below Jantri Value; Valuation report

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ SMC, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ SMC ” BENCH, AHMEDABAD \u0014ी संजय गग\u001a, \u0011ाियक सद\u001b एवं अ पूण\u001a गु!ा, लेखा सद\u001b क े सम%। ] ] Before Shri Sanjay Garg, Judicial Member And Annapurna Gupta, Accountant Member आयकर अपील सं /ITA No.733/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : 2012-13 Vanrajsinh D. Vaghela 1, Kum Kum Park Society Nr.Somnath Society Highway Road Sanand Ahmedabad – 382 110 (Gujarat) बनाम/ v/s. The ITO Ward-3(2)(1) Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: ABRPV 5389 B (अपीलाथ(/ Appellant) ()* यथ(/ Respondent) Assessee by : Shri Parin S. Shah, AR Revenue by : Smt. Kakoli Uttam Ghosh, Sr.DR सुनवाई की तारीख/Date of Hearing : 15/10/2025 घोषणा की तारीख /Date of Pronouncement: 16/10/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 25/02/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2012-2013. Printed from counselvise.com ITA No.733/Ahd/2025 Vanrajsinh D. Vaghela vs. ITO Asst. Year : 2012-13 2 2. The assessee is aggrieved by the action of the lower authorities in making/confirming the addition of Rs.26,24,684/- made by the Assessing Officer (AO) u/s.50C of the Act on account of difference in the sale value of the property as mentioned in the sale-deed as compared to the stamp duty value/Collector rate in respect of property sold by the assessee. 3. The Ld. AR for the assessee, at the outset, has brought our attention to the impugned orders of both the lower authorities to submit that the same are ex-parte orders. The Ld.AR has submitted that the assessee is a villager and was not aware the nitty-gritties of the income-tax proceedings. He has further submitted that this was the first year of the e-proceedings. He has further submitted that the assessee was not served physically by the AO. He, therefore, submitted that the assessee may be given an opportunity to present his case before the AO as the assessee disputes the stamp duty value and wants the matter to be referred to the Valuation Officer of the Department. 4. The Ld.DR, on the other hand, relied upon the findings of the lower authorities. 5. Considering the rival submissions, in our view, interests of justice will be well-served, if the assessee is given an opportunity to present his case before the AO. Accordingly, the impugned order is hereby set aside and the matter is restored to the file of AO for assessment afresh on this issue. The AO will duly consider the application of the assessee, if any, moved for obtaining the Valuation Report of the Departmental Valuation Officer to ascertain the value of the property during the relevant period. Printed from counselvise.com ITA No.733/Ahd/2025 Vanrajsinh D. Vaghela vs. ITO Asst. Year : 2012-13 3 6. With the above observations, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 16 /10/2025. Sd/- Sd/- (Annapurna Gupta ) Accountant Member ( Sanjay Garg) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 16/10/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की \"ितिलिप अ#ेिषत/Copy of the Order forwarded to : 1. अपीलाथ$ / The Appellant 2. \"%थ$ / The Respondent. 3. संबंिधत आयकर आयु& / Concerned CIT 4. आयकर आयु& ) अपील ( / The CIT(A)- (NFAC), Delhi 5. िवभागीय \"ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद/DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स%ािपत \"ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (dictation pad is attached with file) : 15.10.2025 2. Date on which the typed draft is placed before the Dictating Member. : 15.10.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 16.10.2025 7. Date on which the file goes to the Bench Clerk. : 16.10.2025 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : Printed from counselvise.com "