JAYANTILAL RAICHAND SHAH,SURAT vs. DCIT CIRCLE 1(1)(1), SURAT

ITA 1022/SRT/2025Status: DisposedITAT Surat27 July 2026AY 2010-214 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the AO for re-examination of documents submitted by the assessee, which were not produced before the AO. This was done in the interest of justice to determine the actual capital gain.

What were the facts?

The assessee declared capital gains for AY 2020-21. The Assessing Officer (AO) made an addition of Rs. 36,36,330/- to the capital gains, citing failure to adopt market value and capitalization of interest, and unexplained borrowed funds.

What were the issues?

Whether the AO correctly computed the capital gains by disallowing capitalized interest and questioning the utilization of borrowed funds. Whether the assessee provided sufficient evidence for the computation of capital gains.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned in the provided text, but related to capital gains computation and substantiation of expenses/borrowings.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: Shri T. R. Senthil Kumar & Shri Ratnesh Nandan Sahay

For Appellant: Shri Mehul Shah, C.A
For Respondent: Ms. Neerja Sharma, Sr.DR
Hearing: 06/05/2026Pronounced: 27/07/2026

PER: RATNESH NANDAN SAHAY, AM:

1.

This is an appeal filed by the assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi [In short, ‘the ld. CIT(A)’] dated 22/09/2025 for the assessment year (AY) 2020-21 wherein the assessee has raised following grounds of appeal:

"

1.

On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of Assessing Officer in making addition of Rs.36,36,330/- to the total returned income shown under the head long term capital gain.

2.

It is therefore prayed that the abo

The order continues below.

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