VITHALRAO RANGANATHRAO AMBARWADIKAR,AURANGABAD vs. ACIT CIRCLE-3, AURANGABAD

ITA 1963/PUN/2025Status: DisposedITAT Pune25 August 2026AY 2013-147 pages
AI SummaryPartly Allowed

What were the facts?

The assessee sold land and claimed it was agricultural, thus not a capital asset. The assessee also claimed interest disallowance should be deleted as sufficient own funds were available for advances made.

What did the Tribunal hold?

The tribunal held that the land sold was urban land and a capital asset, making the capital gains taxable. However, it ruled that interest disallowance was not justified as advances were presumed to be from own funds.

What were the issues?

Whether the land sold was agricultural or urban, and whether interest on borrowed funds used for advances could be disallowed when sufficient own funds were available.

Which sections of the Income-tax Act were involved?

Section 54B,Section 36(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

Before: SHRI PAVAN KUMAR GADALE & SHRI Dr. DIPAK P. RIPOTE

For Appellant: Shri Prateek Jha &, Shri Prayag Jha
For Respondent: Shri Amit Bobde, CIT-DR

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), Pune-12 [Ld.CIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY 2013-14 on 14.07.2025, emanating from the Assessment Order u/s 143(3) of the Act, dated 31.03.2016. Submission of Ld. AR :

2.

The Ld. AR submitted that there are two issues on which appeal has been filed. First is Capital Gain of Rs.9,92,38,664/- and second is Interest Disallowance.

2.

1 Regarding first issue Capital Gain, the Ld. AR submitted that the land sold was agricultural land hence no capital asset. The Ld. AR also pleaded

The order continues below.

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