Tribunal allows appeal despite delay, applies Section 50C for capital gains, and orders revaluation.

The Tribunal condoned a one-day delay in filing the appeal, allowing it to proceed. Section 50C was applied to compute capital gains on immovable property sales, with the issue remanded for revaluation. The claim of exemption u/s 54 was rejected initially but later considered for reevaluation. An additional ground for referral to the Valuation Officer was admitted, leading to revaluation by the AO. The Tribunal allowed the additional ground, directing revaluation of the property, and treated the appeal as allowed for statistical purposes.

---

---

Issues:
1. Condonation of delay in filing appeal before the Tribunal.
2. Applicability of section 50C on the sale of immovable properties.
3. Rejection of claim of exemption u/s 54 of the Income Tax Act.
4. Referral to Valuation Officer for determining property value.
5. Admissibility of additional ground raised by the assessee.

Issue 1: Condonation of delay in filing appeal before the Tribunal
The judgment addressed a one-day delay in filing the appeal before the Tribunal. An affidavit was filed by the assessee seeking condonation of the delay. Considering the minimal delay, the Tribunal condoned the delay, allowing the appeal to proceed.

Issue 2: Applicability of section 50C on the sale of immovable properties
The case involved the sale of two immovable properties by the assessee, with the Assessing Officer (AO) applying section 50C due to the SRO value exceeding the sale consideration mentioned in the sales deed. The AO computed long-term capital gains based on the SRO value. The CIT (A) upheld the AO's decision, rejecting the assessee's contention of capital loss and claim of exemption u/s 54. The Tribunal noted the objections raised by the assessee regarding deficiencies affecting the property's value and remanded the issue to the AO for revaluation, directing a fair opportunity for the assessee to present their case.

Issue 3: Rejection of claim of exemption u/s 54 of the Income Tax Act
The CIT (A) rejected the assessee's claim of exemption u/s 54 on the grounds that it was not made in the return of income. The Tribunal, upon review, found that the CIT (A) should have considered the claim of deduction u/s 54 and directed the AO to recompute the capital gain after revaluation of the property by the valuation cell.

Issue 4: Referral to Valuation Officer for determining property value
The assessee raised an additional ground requesting referral to the Valuation Officer for determining the property's appropriate value, citing local factors affecting the market value. The Tribunal admitted the additional ground and set aside the CIT (A)'s order, remanding the issue to the AO for valuation by the valuation cell and reevaluation of capital gains, ensuring a fair hearing for the assessee.

Issue 5: Admissibility of additional ground raised by the assessee
The Tribunal admitted the additional ground raised by the assessee regarding referral to the Valuation Officer, considering the objections previously raised before the CIT (A). The Tribunal deemed it appropriate to allow the additional ground and directed the revaluation of the property by the AO, ultimately treating the assessee's appeal as allowed for statistical purposes.

---