Vaibhav Vishwanath Surve Vs ITO (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT), Pune, recently ruled in the case of Vaibhav Vishwanath Surve vs. ITO concerning the assessment year 2010-11. The case arose after the assessee failed to file his income tax return despite being a co-owner in a property transaction amounting to ₹1.33 crore. Based on sale deed records, the Assessing Officer (AO) deemed that Surve’s share of ₹33.33 lakh had resulted in a long-term capital gain that was not disclosed. Due to lack of response from the assessee, the AO passed an ex parte assessment order under Section 144 read with Section 147 of the Income Tax Act, estimating the capital gains at ₹61.64 lakh using stamp duty valuation.
The assessee contested the addition, claiming the land was ancestral agricultural property located in a Coastal Regulation Zone, where construction is restricted. He argued that the AO failed to consider these facts and also did not refer the matter to a District Valuation Officer (DVO) under Section 50C(2) for proper valuation. Surve’s appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] was dismissed due to a delay of 111 days in filing, without providing substantial reasons for denying condonation.
