Loading judgment…
Facts
The assessee appealed against the CIT(A)'s confirmation of an addition of Rs. 24,00,510/- as Long Term Capital Gain (LTCG) under Section 50C, arguing that the land sold was rural agricultural land. The assessee also disputed the validity of re-assessment proceedings initiated under Section 147.
Held
The Tribunal noted the assessee's repeated non-compliance and failure to submit requisite documents before the CIT(A) despite multiple opportunities. In the interest of justice, the Tribunal set aside the CIT(A)'s order and remanded the matter for *de novo* adjudication, directing the assessee to fully comply with future notices and furnish all relevant documents.
Key Issues
1. Whether the addition of LTCG under Section 50C was justified, particularly considering the assessee's claim of rural agricultural land. 2. Whether the CIT(A) erred in passing an ex-parte order and confirming re-assessment proceedings under Section 147 despite the assessee's requests for adjournment.
Sections Cited
50C, 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE- & SHRI TR SENTHIL KUMAR
(Assessment Year: 2013-14) Nitaben Chandulal Patel Income Tax Officer, Vs. A-6, Chhaya Flats, Nr. Ward 5(3)(2), Khawadwala Society, Ahmedabad Ghatlodia, Ahmedabad-380061. [PAN: AFCPP1692N] (Appellant) .. (Respondent) Appellant by : Shri Hardik Vora, AR Respondent by: Shri Rohit Aasudani, Sr. D R. Date of Hearing 13.11.2025 Date of Pronouncement 17.11.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
This appeal is filed by the Assessee against the appellate order dated 18.08.2025 passed by the Commissioner of Income Tax(A), Ahmedabad, relating to the Assessment Year 2013-14.
The assessee has raised the following grounds of appeal:
1. “On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in confirming the addition of Rs.24,00,510/- as 1/8th share of the Jantri Value u/s 50C under the head LTCG.
2. On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in confirming the addition of Rs. 24,00,510/- as LTCG u/s 50C of the Act without considering that the land under question is a rural agricultural land.
3. On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in passing order without considering the adjournment request filed by the assessee.
4. On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in passing ex-parte order without considering that assessee was awaiting certificate from local authority certifying the distance of land in question from the village.
On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in confirming initiation of re-assessment proceedings u/s 147 of the Act.
Alternatively, on the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in not providing benefit of cost of acquisition for calculating LTCG.
It is prayed that the addition made by the Assessing Officer may kindly be deleted considering the facts and evidence on record.
Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.”
3. On perusal of the records, it is observed that the assessee was afforded twelve opportunities of hearing to furnish details, clarifications, and explanations to substantiate its claim regarding alleged undisclosed Long-Term Capital Gain. However, despite being granted multiple opportunities, the assessee repeatedly sought adjournments and failed to furnish the requisite details or explanations before the Ld. CIT(A). Consequently, the Ld. CIT(A), based on the material available on record, upheld the action of the Assessing Officer and dismissed the appeal of the assessee. Before us, the Ld. Counsel for the assessee prayed that, given an opportunity, due compliance will be made, all necessary details, clarifications, and explanations would be furnished to the Revenue authorities. Hence, in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the matter to the file of the Ld.CIT(A) for de novo adjudication. The assessee shall submit all the relevant bank statement/submission/document before the Ld.CIT(A) and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
The order is pronounced in the open Court on 17.11.2025.
Sd/- Sd/- (TR SENTHIL KUMAR) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 17.11.2025 MV आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy