ITAT Sets Aside Order Over AO’s Reliance on Website-Based Property Rates
The ITAT set aside the order and remanded the case to the CIT(A) to reconsider the property valuation after examining the DVO’s report and giving the assessee a fair hearing.
Manjulaben Rameshbhai Patel has filed the present appeal against ITO, challenging an order dated 10/07/2025 passed by NFAC, Delhi.
Background of the case
The assessee filed her income tax return under Section 139(1) of the Income Tax Act. It was found that she had sold an immovable property and received a large amount of Rs. 3,36,00,000 from the sale.
The AO issued statutory notices to examine the transaction. In response, the assessee submitted the necessary documents. However, the AO rejected this report and instead relied on property rates available on the “Garvi Gujarat” website. Based on these findings, the AO made an addition of over Rs. 43,21,430.
Being aggrieved by this decision, the assessee approached the CIT(A), but the appeal was dismissed. The assessee then approached the ITAT. During the hearing, the assessee argued that the AO’s reliance on website-based rates was unjustified.
Tribunal’s Ruling
After considering all the above facts, the Tribunal observed that the AO had sent the matter to a Departmental Valuation Officer (DVO) but did not wait for the report before finalising the assessment. Instead, the AO proceeded using external website data without proper justification.
Therefore, the Tribunal remanded the case to CIT(A) to consider the DVO’s report and decide the matter afresh based on proper evidence.
The Tribunal also mandated that the taxpayer receive a fair opportunity to present her case.
As a result, it partly allowed the assessee’s appeal for statistical purposes.
Citation: Manjulaben Rameshbhai Patel Vs ITO (ITAT Ahmedabad); ITA No. 1659/Ahd/2025; 15/04/2026; 2018-19.
