JOINT COMMISSIONER OF INCOME TAX OSD CIRCLE 2 1 1 AHMEDABAD, AHMEDABAD vs. DEVIKABEN NAVNITLAL PATEL, AHMEDABAD

ITA 476/AHD/2026Status: DisposedITAT Ahmedabad20 August 2026AY 2016-1714 pages
AI SummaryDismissed

What were the facts?

The assessee sold two properties received from a dissolved family trust, which were originally held by their father. The assessee treated the gains as Long Term Capital Gains, but the Assessing Officer considered the date of trust dissolution as the acquisition date, classifying the gains as Short Term Capital Gains.

What did the Tribunal hold?

The Tribunal held that as per Section 49(1)(iii)(a) and Explanation 1(b) to Section 2(42A) of the Income Tax Act, the period of holding of the previous owner must be included. Therefore, the gains arising from the sale of the properties were correctly treated as Long Term Capital Gains.

What were the issues?

Whether the period of holding of the previous owner should be included for determining the nature of capital gains when an asset is acquired through succession, inheritance, or devolution. Whether the gains arising from the sale of properties devolved through a trust are Long Term Capital Gains.

Which sections of the Income-tax Act were involved?

Section 49(1)(iii)(a),Section 2(42A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

For Appellant: Shri Aroon Kumar, CIT-DR
For Respondent: Shri Tushar Hemani, Sr. Advocate
Hearing: 25.06.2026Pronounced: 20.08.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

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This appeal has been filed by the Revenue against the order dated 09.12.2025 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as ‘Ld. CIT (A)’ in short), under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’ in short) for Assessment Year 2016-17. 2. The Revenue has raised following grounds of appeal:-

“1. Whether the Ld. CIT(A) has erred in law and on facts in deleting the addition made of Rs.9,82,79,040/- on account of Short Term Capital Gain without appreciating the facts of the case.

2.

Whet

The order continues below.

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