Bharat Wadhwa v. Income Tax officer(ITO) Delhi

Judgement held

The hearing mandated by Section 250(2)(a) of theAct is not a mere formality but a mandatory statutory requirement for following the principle of natural justice by the
quasi-judicial authority. bare act Section 250(2)(a) of the Act lays down as under: “250(2 ) The fol lo wing shall have the right to be heard at the hearing o f the appeal-
(a) the appellant, either in person or by an authorized representative;”

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Brief history

Facts in brief as culled out from the orders of the authorities below are that the assessee, an individual and real estate developer, filed his retur n o f income fo r A.Y. 2016-17 declaring total income of Rs.16,02,740/-. On the basis of information re ceived through the Insig ht Portal, reassessment proceedings u/s 147 of the Act were initiated in respect of a collaboration ag reement entered into with Sh. Gurdas Ram Saini for development of property bearing No. 143, Vaishali Enclave, Pitamp ura, New Delhi. Under the agreement, the assessee acquired the second floor of the property for a consideration o f Rs.70,00,000/-. During the reassessment proceedings, the case was referre d to the DVO , who determined the fair market v alue o f the second floor at Rs.1,27,99,700/- as on 17 .03.2016. The assessee contended that, apart from the purchase consideration of Rs.70,00,000/-, he had incurred substantial expenditure towards development of the property. However, the Assessing Officer did not accept the explanation and ultimately made an addition of Rs.55,42,750/- u/s 69C of the Act, be ing the difference between the DVO's valuation of Rs.1 ,27,99,700/- and the cost of property considered at Rs.72,56,950/-. Consequently, the total income was assessed at Rs.71,45 ,490/-. #DVO #incomeTax #propertycase #valuationrules.

Source. Reproduced from the order of the Income Tax Appellate Tribunal, Delhi Bench, in 4469/del/2026, pronounced 09 Oct 2026. Published at itat.gov.in. The summary above is an editorial note; rely on the full text of the order.