KISHOR K KASTA,PORBANDAR vs. INCOME TAX OFFICER, WARD 2(4),, PORBANDAR

ITA 892/RJT/2025Status: DisposedITAT Rajkot16 January 2026AY 2015-2016Bench: DR. ARJUN LAL SAINI (Accountant Member)4 pages
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What did the Tribunal hold?

The ITAT found that the assessee had submitted sufficient evidence for a cost of improvement of Rs. 5,00,000. Therefore, the tribunal directed the Assessing Officer to further reduce the addition by Rs. 5,00,000, bringing the final addition to Rs. 3,45,360.

What were the facts?

The assessee sold an immovable property for Rs. 9,50,000, while the stamp duty value was Rs. 17,92,000. The Assessing Officer made an addition of Rs. 17,92,000 under Section 50C for undeclared capital gains. The CIT(A) reduced the addition to Rs. 8,45,360 but did not fully allow the cost of improvement claimed by the assessee.

What were the issues?

The key legal issue was the assessee's entitlement to the indexed cost of improvement for an immovable property sold, where the sale consideration was less than the stamp duty value.

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, “SMC”

Before: DR. ARJUN LAL SAINI

For Appellant: Shri Dushyant Maharshi, Ld. AR
For Respondent: Shri Gopi Nath Chaubey Ld. Sr. DR
Hearing: 24/12/2025Pronounced: 16/01/2026

Per, Dr. Arjun Lal Saini, AM ; Captioned appeal filed by the assessee, pertaining to Assessment Year 2015-16, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals), dated 31/07/2025, which in turn arises out of an order passed by the Assessing Officer dated 27/03/2022, u/s 147 r.w.s 144 of the Income Tax Act, 1961. 2. Grounds of appeal raised by the assessee are as follows:

1.

Ld. AO as well as CIT(Appeals) has erred in not considering the bills and ledgers f

The order continues below.

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