THE ACIT, CIRCLE-1, BHAVNAGAR vs. SHRI VALLABHBHAI DHANJIBHAI PATEL, BHAVNAGAR

ITA 7/AHD/2021Status: DisposedITAT Ahmedabad23 October 2024AY 2012-13Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)16 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the initial sale deed was void ab initio due to non-compliance with the Gujarat Tenancy Law regarding conversion of land and obtaining Collector's permission. Therefore, the cancellation deed did not constitute a transfer for capital gains purposes.

What were the facts?

The assessee and co-owners purchased agricultural land, but later executed a cancellation deed due to unclear title. The AO treated the JANTRI value on the cancellation date as undisclosed income, deeming it a capital gain. The CIT(A) deleted the addition.

What were the issues?

Whether the cancellation of a sale deed for agricultural land, which was void ab initio due to non-compliance with tenancy laws, constitutes a transfer for capital gains tax and if Section 50C is applicable.

Which sections of the Income-tax Act were involved?

Section 45,Section 2(47),Section 50C,Section 43

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Before: Smt. Annapurna Gupta & Shri T.R. Senthil Kumar

PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Revenue as against the appellate order dated 23.09.2020 passed by the Commissioner of Income Tax (Appeals)-6, Ahmedabad arising out of the reassessment order passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2012-13. 2. The registry has noted that there is a delay of 34 days in filing the above appeal. This appeal is filed before the Tribunal on I.T.A No. 07/Ahd/2021 A.Y. 2012-13 Page No 2 15.01.2021, this period falls under COVID-19 Pandemic situation. Thus following Hon’b

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 45

All 1,374 judgments and leading authorities on Section 45 →

Recent GST High Court judgments

Search GST case law →