Rajiv Nivas Vs DCIT (ITAT Bangalore)
Wrong Forum Forgiven, Wrong Valuation Reopened: ITAT Restores ₹1.31 Crore Capital-Gain Dispute
Summary: In Rajiv Nivas v. DCIT, ITA No. 759/Bang/2024, decided on 28 August 2026, the Bangalore Bench of the Income Tax Appellate Tribunal condoned a substantial 410-day delay caused by the assessee’s bona fide filing of the appeal before the wrong appellate forum. On merits, it disapproved the computation of capital gains based on a Valuation Committee rate when the AO, despite referring the property to the DVO, passed the draft assessment order without awaiting the DVO’s report. The valuation issue was restored to the AO for fresh determination.
Relevant Facts
The assessee was a non-resident individual who filed his return for AY 2020-21, declaring total income of approximately ₹71.41 lakh. He had sold an inherited, converted non-agricultural property with a building situated at Casaba Village, Mangalore District.
The property was sold to Northern Sky Properties Pvt. Ltd. for ₹14 crore, of which the assessee’s 25% share was ₹3.50 crore. The assessee received ₹1.68 crore in cash, while ₹98.20 lakh was adjusted towards purchase of a flat from the buyer. He also invested ₹50 lakh in specified bonds & claimed exemption u/s 54EC.
