CHHAGANBHAI MADANBHAI PANCHOLI,SURAT vs. ITO, WARD-2(3)(7), SURAT

ITA 748/SRT/2025Status: DisposedITAT Surat17 August 2026AY 2011-127 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT held that since the determination of the nature and quantum of capital gain was remanded to the AO, the consequential claim of exemption under Section 54 should also be examined by the AO. The tribunal also found merit in the assessee's grievance regarding the CIT(A)'s alternative direction for short-term capital gain computation.

What were the facts?

The assessee declared Nil taxable capital gain after claiming exemption under Section 54 on the sale of an immovable property. The AO reopened the case and made an addition of Rs. 74,00,000/- as undisclosed short-term capital gain. The CIT(A) partly allowed the appeal, remanding the issue of capital gain to the AO but disallowing additional evidence for Section 54 exemption.

What were the issues?

Whether the claim for exemption under Section 54 should be examined by the AO when the nature and quantum of capital gain are remanded. Whether the CIT(A)'s alternative direction for short-term capital gain computation was justified.

Which sections of the Income-tax Act were involved?

Section 144,Section 147,Section 139,Section 54

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Shri P.M. Jagasheth, CA
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 22.06.2026Pronounced: 17.08.2026

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first-appeal dated 13.05.2025 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“Ld. CIT(A)”], which in turn arises out of the assessment-order dated 24.10.2017 passed by learned ITO, Ward-2(3)(7), Surat [“Ld. AO”] u/s 144 r.w.s. 147 of Income- tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2011-12, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). Chhaganbhai Madanbhai Pancholi

2.

The background facts leading to present appeal are such that the assessee-individual filed his return of income of AY 2

The order continues below.

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