GIRDHARBHAI HARIBHAI GAJERA,SURAT vs. ITO(INTERNATIONAL TAXATION), SURAT

ITA 143/SRT/2019Status: DisposedITAT Surat22 February 2023AY 2015-16Bench: SHRI PAWAN SINGH (Judicial Member), DR. A.L.SAINI (Accountant Member)16 pages
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What did the Tribunal hold?

The Tribunal upheld the AO's rejection of the conversion of land into stock-in-trade, confirming the addition as long-term capital gains. However, it allowed an additional ground regarding the valuation of the land, directing the AO to consider a valuation difference within the 10% tolerance limit prescribed by Section 50C.

What were the facts?

The assessee claimed that agricultural land was converted into stock-in-trade. The Assessing Officer (AO) and the Commissioner (Appeals) rejected this claim, treating the sale of land as a capital gain. The AO calculated the capital gain based on the market value of the land as per the Stamp Duty Authority.

What were the issues?

Whether agricultural land converted into stock-in-trade is taxable as capital gains, and whether the valuation of the land for capital gains calculation is correct.

Which sections of the Income-tax Act were involved?

Section 45(2),Section 2(14),Section 143(3),Section 50C

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Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: SHRI PAWAN SINGH, JM &DR. A.L.SAINI, AM

For Respondent: Shri Vinod Kumar, Sr-D.R
Hearing: 14/12/2022Pronounced: 22/02/2023

PER DR. A. L. SAINI, ACCOUNTANT MEMBER:

Captioned appeal filed by the assessee, pertaining to assessment year 2015- 16, is directed against the order passed by the Learned Commissioner of Income- tax (Appeals)13- Ahmedabad [‘Ld. CIT(A)’ for short’ dated 22.02.2019, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 [hereinafter referred to as the “Act”] dated 29.12.2017. 2.

The order continues below.

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