SHRI. ABHISHEK VIJAY INGLE,NAGPUR vs. INCOME TAX OFFICER WARD 5(3), NAGPUR

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ITA 316/NAG/2025Status: DisposedITAT Nagpur09 June 2026AY 2017-183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) had dismissed the appeal without addressing the assessee's claim that the transaction was business income. Therefore, the Tribunal restored the issue to the CIT(A) for fresh adjudication on merits.

What were the facts?

The assessee sold an immovable property, and the Assessing Officer made an addition under Section 50C of the Act based on stamp duty value exceeding the sale consideration. The assessee contended that the transaction was part of its business as a builder and developer, not a capital gain.

What were the issues?

Whether the income from the sale of immovable property should be treated as capital gains or business income, and whether the CIT(A) properly adjudicated this issue.

Which sections of the Income-tax Act were involved?

Section 50C,Section 147,Section 144,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH :: NAGPUR

For Appellant: Shri Pranav Ashtikar, CA
For Respondent: Shri Surjit Kumar Saha, Sr. DR
Hearing: 09.06.2026Pronounced: 09.06.2026

PER ANUBHAV SHARMA, JM:

This appeal filed by the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi, (for short, “CIT(A)”), dated 17/01/2025 passed under section 250 of the Income Tax Act, 1961 (for short, “Act”), for the Assessment Year (AY) 2015-16.

ITA No. 316/NAG/2025 (Shri Abhishek Vijay Ingle) 2. On hearing both the sides, we find that National Faceless Appeal Centre, Delhi, (NFAC) has dismissed the appeal of the assessee relying on the decision of Hon'ble Supreme Court in B.N. Bhattachargee, 118 ITR 41[SC]. In fact, the assessment itself was passed under Section 147 read with Section 144 of the Act. The addition pertains to deemed income under Section 50C of the Act on the basis that the assessee had sold immovable property for sale consideration of `. 40/– Lacs but the stamp duty was paid of `.40,62,600/– .

3.

The assessee has raised a plea in first appeal that the assessee is engaged in business of builders & developers and this transaction was part of its business giving rise to income from business of profession and not under the head of income from capital gain. However, this issue has not been dealt by Ld. CIT(A) and the appeal has been dismissed without any observation on merits.

ITA No. 316/NAG/2025 (Shri Abhishek Vijay Ingle) 4. In the light of the aforesaid, we consider it appropriate an case to restore the issue on merits as well as law to the files of Ld. CIT(A) to give afresh opportunity of hearing to the assessee and pass order afresh.

6.

In the result, the appeal is allowed for statistical purposes.

Order pronounced in open Court on 09.06.2026 Sd/– Sd/– ANUBHAV SHARMA KHETTRA MOHAN ROY ACCOUNTANT MEMBER JUDICIAL MEMBER Nagpur: Dated: 09/06/2026 Z.U, P.S Copy to: 1. The Assessee 2. The Revenue 3. The Pr.CIT concerned. 4. The DR, ITAT, Nagpur 5. Guard file. By order

Sr.PS/PS ITAT, Nagpur

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