Dhirubhai Bavabhai Gevaria Kamalpark Society Vs ITO (ITAT Surat)
Income Tax Appellate Tribunal (ITAT) Surat has set aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)] in the case of Dhirubhai Bavabhai Gevaria Kamalpark Society Vs ITO. The appeal concerned an assessment under Section 144 read with Section 147 of the Income Tax Act, 1961, for the Assessment Year 2013-14. The assessee contested the reopening of assessment under Section 148 and the addition of ₹71,68,000 under Section 50C, arguing that the CIT(A) had not provided a fair opportunity for representation. It was also contended that the CIT(A) did not consider the written submissions filed on the income tax portal and dismissed the appeal without a detailed discussion of the case’s merits. The tribunal found that the CIT(A) had issued limited notices but did not account for the assessee’s response or the request to refer the valuation to the Department Valuation Officer (DVO).
ITAT Surat observed that both the Assessing Officer (AO) and CIT(A) had passed ex-parte orders, leading to an unfair assessment process. The tribunal highlighted that the AO had directly added the disputed amount as capital gains without adjusting the cost of acquisition and improvement claimed by the assessee. Given these procedural lapses, the ITAT ruled in favor of the assessee for statistical purposes and remanded the case to the AO for fresh assessment. The AO has been directed to provide the assessee with a reasonable opportunity to present their case, including a potential reference to the DVO for property valuation. The tribunal also emphasized the importance of timely compliance from the assessee in future proceedings.
