Sandeepkumar Kishorbhai Barot Vs ITO (ITAT Ahmedabad)
50C Without DVO Reference Invalid: Ahmedabad ITAT Remands Capital Gains for Fresh Valuation & Set-off
Ahmedabad ITAT, SMC Bench, in Sandeepkumar Kishorbhai Barot Vs ITO (ITA No.1645/Ahd/2025; AY 2013-14; order dated 18-12-2025), set aside the addition of ₹24.91 lakh made u/s 50C and restored the matter to the AO for fresh adjudication.
The Tribunal noted that although the assessee had specifically disputed the stamp-duty value and requested a reference to the DVO, the AO mechanically applied section 50C without making the mandatory reference—thereby denying the assessee’s statutory right. Even the Department fairly conceded this lapse.
Accordingly, the ITAT directed the AO to refer the matter to the DVO to determine the prevailing market value as on the date of sale. The Tribunal also directed the AO to grant set-off of ₹30,000 already offered by the assessee (though shown under a wrong head) while recomputing capital gains.
The appeal was allowed for statistical purposes, reaffirming that section 50C cannot be invoked without a DVO reference when the assessee disputes stamp valuation
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal has been preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), Addl/JCIT (A)-1, Nashik (hereinafter referred to as “CIT(A)”), dated 25.06.2025 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2013-14.
