Niraj Agarwal vs. ITO, Ward 6(1)

Parties Involved

Facts Summary

This case involves an appeal by the assessee, Niraj Agarwal, against the order of the National Faceless Appeal Centre, Delhi, dated 30.03.2026, for the Assessment Year 2024-25. The assessee, engaged in the business of trading stainless-steel products, filed a return of income declaring a total income of ₹6,96,690/-. Agarwal, along with two other co-owners, purchased two parcels of land for an aggregate consideration of ₹1,35,12,847/-, while the stamp value of the properties was ₹4,15,38,746/-. The Assessing Officer (AO) treated the difference of ₹2,79,75,899/- as deemed income under section 56(2)(x) of the Act and added 1/3rd of the amount, which comes to ₹93,25,300/-, to the income of the assessee. The order of the AO was confirmed by the Commissioner of Income Tax (Appeals) (CIT(A)). Agarwal appealed against this order, arguing that the stamp value should not be substituted as the sales consideration without referring the matter to the Deputy Valuation Officer (DVO).…

Legal Issues

• 1. Whether the order of the AO and CIT(A) confirming the addition of ₹93,25,300/- under section 56(2)(x) of the Act is correct?

Judgment Outcome

Decided in favour of Assessee.

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