Vanrajsinh D. Vaghela Vs ITO (ITAT Ahmedabad)
Assessee, an individual & a villager, sold an immovable property. In the sale deed, the declared consideration was lower than the stamp duty/collector rate. AO invoked Sec. 50C & made an addition of ₹26,24,684 being the difference between stated sale price & stamp duty valuation. Assessee did not appear during assessment proceedings as it was the first year of e-proceedings & he was unaware of the online system. AO passed the assessment ex parte.
Assessee filed appeal before CIT(A), but even those proceedings were conducted ex parte, & the addition u/s 50C was confirmed without granting meaningful opportunity. Assessee submitted that he wanted to challenge the stamp duty valuation & request reference to the Departmental Valuation Officer (DVO), but was never given an opportunity to do so.
Before Tribunal, it was contended that:
- Assessee is a villager unfamiliar with e-proceedings.
- No physical service of notice was made.
- AO/CIT(A) never allowed him to file objections to stamp duty value.
- He disputes the stamp valuation & requests reference to DVO as permitted u/s 50C(2).
Tribunal observed that both AO & CIT(A) passed ex parte orders & that principles of natural justice were violated. It noted that the law under Sec. 50C allows Assessee to demand a valuation by DVO if he disputes the stamp duty value. Therefore, in the interest of justice, Tribunal set aside the assessment order & restored the matter to the AO with specific direction to:
- Give the Assessee a proper opportunity of being heard,
- Consider his request for DVO valuation, &
- Pass a fresh order after due verification.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
