Ashokkumar Jivrajbhai Gujarati vs The AO, NFAC, Delhi

Parties Involved

Facts Summary

The assessee, Ashokkumar Jivrajbhai Gujarati, filed an appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 10.04.2024 for Assessment Year (AY) 2018-19. The assessee contested the addition of Rs.18,86,850/- made by the Assessing Officer on account of excess fair market value over the purchase consideration. The assessee also argued that the Commissioner of Income Tax (Appeals) did not offer adequate opportunities to hear the case and passed an ex-parte order. The assessee further contended that the Assessing Officer erred in initiating a penalty under section 270A of the Income Tax Act, 1961. The assessee submitted that the District Valuation Officer (DVO) estimated the value of the land at Rs.155/- per square meter, which was higher than the market rate. The assessee relied on several precedents to support his contention. The Revenue, represented by the Senior Departmental Representative (Sr. DR), supported the order of the lower authorities, stating that the DVO had considered all relevant factors while estimating the market value of the land.…

Legal Issues

• 1. Addition of Rs.18,86,850/- on account of excess fair market value over the purchase consideration.
• 2. Inadequate opportunities to hear the case and ex-parte order.
• 3. Penalty under section 270A of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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