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Judgment
PER VIMAL KUMAR, JM:
ITA No. 1720/Del/2026, A.Y. 2008-09
The appeal filed by the Appellant/assessee is against order dated 22.12.2025 of ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [hereinafter referred to as “the CIT(A)”] under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) arising out of assessment order dated 28.09.2021 of Ld. Assessing Officer/ Assessment Unit, Delhi (hereinafter referred to as ‘the AO’) u/s 147 r.w.s. 263 of the Act for A.Y. 2008-09.
Brief facts of the case are that as per information received, assessee had sold 7.6875 acres urban agricultural land bearing survey no. 38/156 of baprola village, tehsil-Punjabi Baugh, Delhi to M/s. Experience builder Private Limited for sale consideration of Rs. 19.6 Crores, the share of the assessee is 10% comes to Rs. 1.96 crore during financial year 2007-08 relevant to 2008-09. The assessee had not filed return of income. The case was reopened by issuing notices u/s 148 of the Act after recording reasons and taking prior approval for competent authority. Notice u/s 142(1) of the Act and show cause notice were issued. The assessee failed to comply with. The assessment was completed u/s 144 r.w.s. 147 on 28.02.2014 making addition of Rs. 1,26,14,035/- on account of long term capital gain on sale of property. Ld. CIT(A) dismissed the appeal vide order dated 26.10.2015. Hon’ble ITAT vide order dated 02.09.2019 remanded the matter back to the AO. On completion of proceedings, Ld. AO passed assessment order dated 28.09.2021 making addition of Rs. 1,26,14,035/-.
Against order dated 28.09.2021, the appellant/assessee filed appeal before Ld. CIT(A) which was partly allowed vide order dated 22.12.2025.
Being aggrieved, the appellant/assessee preferred appeal on following grounds:
“1.Agriculture land is taxed as residential land.
2.Valuation of land is not considered by Appellant authority.
3.Assessment of H.U.F was completed wrongly as Individual assessee and bad in law.
4.Original Notice of assessment u/s 147/148 were never delivered to Assessee by Income tax officer, ward 26(4) as per time allowed in Income tax Act. (Original Assessment Order passed on dated 28.02.2014).
5.Deduction under Section 54B for Investment in Agriculture land was not allowed to Assessee even after ITAT order passed with specific direction 6. Assessing officer NFAC passed the Assessment order without giving reasonable opportunity of hearing to assessee.
7.Assessee leaves to add, alter, change or remove any ground of appeal at the time of hearing.
8.In the light of above submission, Your Honor, kindly consider the facts of case and delete the addition of income.”
ITA No. 2608/Del/2026, A.Y. 2008-09
The appeal filed by the Appellant/assessee is against order dated 26.02.2026 of ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [hereinafter referred to as “the CIT(A)”] under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) arising out of assessment order dated 24.03.2023 of Ld. Assessing Officer/ Assessment Unit, Delhi (hereinafter referred to as ‘the AO’) u/s 147 r.w.s. 263 of the Act for A.Y. 2008-09.
Brief facts of the case are that on basis of information that the assessee along with others sold property for Rs. 19.60 crores in which he had share of 10% and received Rs. 1,96,03,125/- in financial year 2007-08. The assessment u/s 144/147 of the Act was completed on 28.02.2014 at income of Rs. 1,26,14,035/- after determining the capital gain on basis of fair market value of the property as on 01.04.1981. The ITAT set aside the assessment order and remanded the issue to the file of ld. AO with certain directions. Notice u/s 142(1) of the Act dated 18.01.2023. Letters dated 25.01.2023 and 04.02.2023 order disposing of objections dated 14.02.2023 and show cause notice dated 14.02.2023 were issued. The assessee submitted submissions. On completion of proceedings, ld. AO vide order dated 24.03.2023 made addition of Rs. 1,81,96,200/-.
Against order dated 24.03.2023 of ld. AO, the assessee filed appeal before ld. CIT(A) which was dismissed vide order dated 26.02.2026.
Being aggrieved the appellant/assessee preferred present appeal on following grounds:
“1.Agriculture land is taxed as residential land.
2.Valuation of land is not considered by Appellant authority.
3.Assessment of H.U.F was completed wrongly as Individual assessee and bad in law.
4.Deduction under Section 54B for Investment in Agriculture land was not allowed to Assessee even after ITAT order passed with specific direction
5.Assessing officer ward 45(1) passed the Assessment order without giving reasonable opportunity of hearing to assessee.
6.Assessment order dated 03.06.2021 by NFAC assessing officer was rejected without any reasonable cause.
7.Assessee leaves to add, alter, change or remove any ground of appeal at the time of hearing.
8.In the light of above submission, Your Honor, kindly consider the facts of case and delete the addition of income.”
Ld. Authorized Representative for appellant/assessee submitted written submissions as under:
“Stage 1: Assessment of the Assessee under Section 144/147 of the Income tax Act 1961 with valuation of land 16,50,000.00 per acres at village Baprola.
A. Your Honor, we informed that as per Original Assessment order was passed by learned Assessing Officer Sh. B L Meena on dated 28.02.2014. Copy of the assessment order is attached on page no. 1 to 6. the Valuation of land was assessed to be Rs. 16,50,000 per acre. The assessing officer specifically mentioned word that "Valuation of land as on 01.04.1981 is done on the basis of "Information gathered from different sources".
Your Honor, we please record that no ward Inspector was sent to village Baprola by Assessing officer. The Assessing officer himself never visited to Baprola Village. No Property dealer's statement from village Baprola was taken on record by assessing officer to calculate Market value of Land as on 01.04.1981. All the impression of valuation of Land on the basis of Information gathered from different sources which is incorrect and false on record. No evidence is available on record.
Assessment of Other 10 Assessees under Section 144/147 of the Income tax Act 1961 with valuation of land 48,50,000.00 per acres in the same assessment year of the same locality village Baprola.
Your Honor, we inform that the Learned Assessing Officer passed Assessment order of Sh. Pradeep by using the valuation of Land as Rs. 16,50,000 per acre. However, the same assessing officer used the valuation rate of land of Rs. 48,40,000 per acre while assessment in the case of 10 assessee under the group of Meer Singh & Others who also sold Agriculture land in Village Baprola in the same assessment year. Date of order of assessment was 31 December 2013.
Complete Name and PAN no of Meer Singh and other under assessment for same Assessment year 2008-09 are attached on Page no 7. Copies of assessment order passed by Sh. B L Meena are also attached for your reference. (Page no 8 to 14).
Your Honor, please record that Income tax Assessment files are not available/traceable in Income tax department in case of Meer Singh and others as per Information available with us. Meaning thereby, assessing officer passed assessment order of Sh. Pradeep to only harass the assessee and create bogus demand/high pitched demand in Income tax record. RTI reply received for untraceable record is attached from page no. 149 to 149
Stage 2: Assessee filed Appeal with Honorable CIT Appeal and lost.
Assessee filed CIT Appeal against the Income tax assessment order and lost the Appeal. CIT Appeal was decided on dated 26.10.2015. Appeal order is attached on page No.15 to 26.
Your Honor, after the assessee lost the Appeal with Honorable CIT Appeal, assessee started to discuss the assessment matter with the others villagers. At this point of time, Assessee came to know that other villagers received Nil demand Income Tax Assessment Order from the same Income Tax Officer for the same period of assessment of the same sale of nearby land in Village Baprola. Aggrieved by hearing the news, Assessee decided to file the appeal with Honorable ITAT Bench.
Stage 3: Assessee filed Appeal with Honorable ITAT Bench, Delhi and received partial relief. Direction was given to Income tax officer to determine fair market value by giving opportunity to the assessee and if the A.O is not satisfied then refer the matter to the D.V.O.
Your Honor, Assessee filed Appeal with the Honorable ITAT Bench, Delhi and the partial relief was received on dated 02 September 2019 with direction. Valuation of the property is to be decided as on 01-04-1981. Order of Honorable ITAT Bench is attached on page No. 27 to 34.
Stage 4: Learned Assessing officer Faceless passed the assessment order in favor of the assessee. A.O. relied on DDA published rates of land as on 01 April 1981 Rs. 2000 Sq. meter or 80,00,000.00 per acre. The demand of income tax was reduced to Rs. Nil.
Income tax officer NFAC passed the assessment order on dated 03/06 /2021 with NIL demand. The Income tax officer was Sh. Vishesh Prakash, NFAC. NFAC Assessment order is attached on page No.35 to 52.
Stage 5: Honorable Pr. CIT-15 objected the Assessing officer order passed under section 263. DVO valuation report was directed to be used as Value of Land as on 01-04-1981.
PR. CIT, Delhi-15 issued order dated 26.03.2022 and directed the assessing officer to change the value of the land as on 01-04-1981. Copy of PR. CIT order passed u/s 263 is attached on Page No.53 to 57.
Your Honor, the Honorable Pr. CIT 15 was informed about the defects in DVO report and even complaint filed against DVO by the Assessee Sh. Naresh Kumar. However, the Honorable Pr. CIT-15 passed the order under section 263 with decision that no favor can be given to the assessee which is against the revenue.
Copy of the letters of the reply filed with Pr. Cit-15 office is attached on page no. 58 to 61G. Also, Your Honor, Assessee Sh. Naresh Kumar was personally appeared before him and informed about the irregularities going on DVO office but no consideration of the same was given.
Stage 6: Objection on DVO Report by Naresh Kumar, assessee in part sale of Baprola property jointly with Sh. Pradeep
Your Honor, we inform that Revised Assessment order of our client Sh. Pradeep was passed by NFAC, assessing officer Sh. Vishesh Prakash on dated 03.06.2021. Your Honor, assessing officer has valued Agriculture land at rate of Rs. 2000 per sq meter or Rs. 80,00,000 per acre in the case of Sh. Pradeep (Assessment order of Pardeep ji are attached on Page no 35 to 52).
Your Honor, DDA has announced rates of DDA in Delhi since 01.04.1981 and even prior to 1981. These rates are announced so that DDA can acquire land from people of Delhi and develop the land for either residential or commercial or any development infrastructure project. Rates of DDA as on 01.04.1981 are attached on Page no 62 to 65.
Your Honor, Valuation officer valued the property from market value as on 01.04.1981 decided by House tax department. He referred page IV/117 of Nabhi Publication book for guide to house tax in Delhi, 2003-2004. This book is no more available at any sales counter in Delhi. Valuation officer forgot about DDA rates announced for acquiring land in Delhi as on 01.04.1981. We inform Your Honor, that House tax department value land for collection of house tax and not for property sale or purchase. Whereas, DDA announces rates of property in Residential and commercial areas to acquire land from time to time. At present, House tax department's rates of land for Baprola village is Rs. 230 per sq meter while the rate of land announced by Revenue Department, Delhi is Rs. 23280 per sq meter.
Valuation of Land as on 01.04.1981 has been announced by DDA. DDA has announced minimum rate of property covering total area of Delhi. Rates of land as per DDA as per 01.04.1981 was Rs. 2000 sq per meter. Please note that these rates of land are available on DDA website at present date too.
1.Accordingly, we informed your office about valuation rates of house tax department and DDA on different 2 dates as follows: -
As per DDA As per house tax dept Valuation as on 01.04.1981 Rs. 2000 per sq meter Rs. 230 per sq meter Valuation as on 01.04.2022 Rs. 23280 per sq meter Rs. 230 per sq meter So, from the above, Your Honor, value of agriculture land was Rs. 230 per sq meter as on 01.04.1981 and still on dated 01.04.2022, it is Rs. 230 per sq meter. However, assessing officer and Pr. CIT-15 ignored rates of DDA.
Further, Your Honor, as per DVO, value of the property is Rs. 230 sq. meter from 01 /04/1981 as well as 01/04/1991 as well as 01/04/2001 as well as 01/04/2011 and as well as 01/04/2022. The basic concept which is not clear to the DVO was that municipal corporation of Delhi has adopted property value rates only for the purpose of levy of house tax. It is kept to be minimum so that normal resident may bear the cost. And Your Honor, as per DVO, Entire Delhi property rates never changed since 01/04/1981. However, when we refer to DDA rates of Land then it changes over a period of time.
Copy of the DVO report is attached on page no 66 to 72 along with MCD Return form on page no 73 to 80.
Your Honor, kindly note that the assessee Naresh Kumar filed number of complaints against the DVO with all the income tax department officials and even with Vigilance cell. Copy of the letter of complaint filed are attached from page no 89 ΤΟ 123.
Stage 7: The NFAC passed the assessment order against the assessee relying upon the valuation report of DVO.
Income tax officer NFAC passed the assessment order as per direction received from PR. CIT Delhi 15 on dated 24/03/2023 with demand of Rs. 1,88,39,432.00. He made the addition of income of Rs. 1,81,96,200.00. (Page No. 81 TΟ 88).
Stage 8: Assessee filed Appeal with Honorable CIT Appeal and lost.
A) Assessee filed appeal with Faceless CIT (Appeal). CIT Appeal decided the appeal against the assessee. (page No. 124 to 145).
All the above orders of assessment and appeal are attached as per the Index.
Stage 9: The Assessment order of Dalel Singh who is family part in Sale of property is passed with Nil demand
Your Honor, we inform that the assessment order of Sh. Dalel Singh who is also part of property ownership is completed by the assessing office with Nil demand. When we tried to inspect the assessment file, we were denied permission. Copy of the assessment order is not provided to us on demand.
Stage 10: Your Honor, we inform that the assessee has obtained registered valuer report. The rate of the property is valued at Rs. 900 per square meter. Copy of the report is attached herewith on page no. 146 to 148.”
In written submissions dated 21.09.2026, the appellant/assessee relied on order dated 18.09.2026 of ld. CIT(A) in case of Jaswant Singh.
Ld. Departmental Representative submission that Ld. AO has failed to decide the issue by referring the matter to the Devisional Valuation Officer.
ITA No. 2608/Del/2026 is taken as lead case.
From examination of record in light of aforesaid rival contention, it is crystal clear that Ld. AO vide order dated 24.03.2023 had failed to refer the matter to the District Valuation Officer for determining fair market value or accepting the fair market value shown by the assessee in terms of order dated 02.09.2019 in ITA No. 327/Del/2016 titled as Raj Singh vs. ITO. Therefore, the impugned order dated 26.02.2026 of ld. CIT(A) and 24.03.2023 of Ld. AO for afresh decision in accordance with law specially in compliance of order dated 02.09.2019 of ITAT in ITA No. 327/Del/2016 titled as Raj Singh vs. ITO of ITAT after affording a fair opportunity of hearing to the assessee.
As the facts, grounds and issue in ITA No. 2608/Del/2026 is mutatis mutandis similar to ITA No. 1720/Del/2026 hereinabove, we hold accordingly.
In the result, the appeals filed by the assessee are allowed for statistical purposes.