Vijay Pal Singh Vs Assessment Unit (ITAT Lucknow)
The case concerns an appeal against an assessment order dated 21.03.2024 passed under sections 147 read with 144B of the Income Tax Act, 1961, wherein the total income of the assessee was determined at ₹1,99,26,867 as against the returned income of ₹3,34,590. A major addition of ₹1,95,92,277 was made on account of long-term capital gains (LTCG) arising from the sale of immovable property.
The Assessing Officer (AO) adopted the stamp duty valuation (circle rate) of the property, which was higher than the declared sale consideration. The assessee disputed this valuation and requested that the matter be referred to the Departmental Valuation Officer (DVO). Although the AO stated that a reference was made on 14.03.2024, the assessment was completed on 21.03.2024 without awaiting any valuation report, citing limitation constraints.
The assessee challenged the assessment before the Commissioner of Income Tax (Appeals), who upheld the addition. Subsequently, the assessee appealed before the Income Tax Appellate Tribunal (ITAT), submitting that despite repeated requests, no valid reference to the DVO was actually made. Supporting this claim, an RTI reply dated 18.02.2026 revealed that although a technical assistance process was initiated, no effective reference to the DVO was completed, and no further communication was made by the assessment unit.
