Tapan Das Vs ITO (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT), Kolkata, considered an appeal against the order of the National Faceless Appeal Centre (NFAC) for the Assessment Year 2014-15. The appeal was filed with a delay of 118 days, which the assessee attributed to health issues. Relying on the principle laid down by the Supreme Court in Collector, Land & Acquisition vs. Mst. Katiji & Others, the Tribunal held that delays supported by sufficient cause should be viewed liberally in the interest of substantial justice and accordingly condoned the delay.
The assessee had originally filed a return declaring an income of Rs. 4,55,242. During limited scrutiny, the Assessing Officer completed the assessment under Section 143(3) by making an addition of Rs. 63,52,589 towards long-term capital gains arising from the sale of land. The NFAC dismissed the assessee’s appeal.
Before the Tribunal, the assessee pressed only the ground relating to the Assessing Officer’s refusal to refer the valuation of the property to the Departmental Valuation Officer (DVO) under Section 50C(2) of the Income-tax Act. The Tribunal observed that the assessment order itself recorded the assessee’s request for such a reference. It held that where an assessee disputes the value adopted and seeks a DVO reference, the Assessing Officer is duty-bound to make the reference under Section 50C(2). Rejecting the request was held to be contrary to the statutory provision.
