Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax

127 ITR 664High Court1981#6434 most cited

What is Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax authority for?

The character of land is determined by entries in revenue records, and if these records classify land as agricultural, it should be considered as such for tax purposes.

18

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2016 to 2025.

Also referred to as

Gordhanbhai Kahandas Dalwadi · CIT v. Gordhanbhai Kahandas Dalwadi · 127 ITR 664 · agricultural land · revenue records · character of land · Gujarat HC

Sections most often in play

Section 143(3)Section 2(14)(iii)Section 270A(8)Section 270A(9)

Issues it is cited on

section 2(14)(iii)(a)section 2(14)(iii)(b)section 96section 2(14)(iii)section 2(47)(v)jdaclarificatory amendmentsection 53transfer of capital assetsection 2(14)assistant directorcancellation of registration

Judgments citing Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax

Bhadrabala Dhimantrai Joshi, Surat vs. ACIT Circle-1(3), Surat

In the result, appeal of the assessee is partly allowed

ITA 126/SRT/2025[2017-18]Status: DisposedITAT Surat26 Sept 2025AY 2017-18

Bench: Shri Dinesh Mohan Sinha & Shri Bijayananda Prusethआयकर अपील सं./Ita No.126/Srt/2025 Assessment Year: 2017-18 (Hybrid Hearing) Bhadrabala Dhimantrai Joshi Assistant Commissioner Of बनाम/ 6Th Shree Nagar Society, Ghod Income-Tax, Circle-1(3), Surat, Vs. Dod Road, Surat-395 001 Anavil Business Centre, Adajan, Surat-395 007 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aazpj 4561 G (अपीलाथ"/Appellant) (""थ" /Respondent) "नधा"रती क" ओर से /Appellant By Shri P.M. Jagasheth, Ca राज"व क" ओर से /Respondent By Shri Ajay Uke, Sr-Dr सुनवाई क" तार"ख/Date Of Hearing 04/08/2025 उ"घोषणा क" तार"ख/Date Of Pronouncement 26/09/2025 आदेश / O R D E R Per Bijayananda Pruseth, Am: This Appeal By The Assessee Emanates From The Order Passed Under Section 250 Of The Income-Tax Act, 1961 (In Short, 'The Act’) Dated 20.01.2025 By The National Faceless Appeal Centre, (Nfac), Delhi /Commissioner Of Income-Tax (Appeals) [In Short, The ‘Cit(A)’] For The Assessment Year (Ay) 2017- 18, Which In Turn Arises Out Of Assessment Order Passed By The Assessing Officer (In Short, ‘Ao’) U/S. 143(3) Of The Act On 03.12.2019. 2. Grounds Of Appeal Raised By The Assessee For The Appeal Are As Under: “1. On The Facts & Circumstances Of The Case As Well As Law On The Subject, The Ld. Commissioner Of Income Tax (Appeals) Has Erred In Confirming The Action Of The Assessing Officer In Making Addition Of Rs.1,21,92,898/- On Account Of Alleged Disallowing Immunity Claimed U/S.2(14) Of Income-Tax Act, 1961 By Treating Again As Business Income, Which Ground Has Never Been Conveyed And/Or Initiated To Respond & Revealed Through Assessment Order Only. As No Opportunity Is Afforded Either Through Any Notice And/Or More

Section 143(2)Section 143(3)Section 2(14)Section 2(14)(iii)Section 250Section 270ASection 270A(8)

…C) (iii) CIT Vs. Vajulal Chunilal [1979] 1 Taxman 438 (Guj. HC) (iv) CIT Vs. Manilal Somnath [1977] 106 ITR 917 (Guj. HC) (v) Pr. CIT, Rajkot -1 Vs. Heenaben Bhadresh Mehta [2018] 96 Taxmann.Com 164 (Guj. H.C.) (vi) Gordhanbhai Kahandas Dalwadi Vs. CIT [1981] 127 ITR 664 (Guj. H.C.) ITA No.126/Srt/2025 A.Y 17-18 Bhadrabala D Joshi (vii) Shri Daxeshkumar G. Suthar Vs. ITO, Wd- 6(2), Surat (ITA No. 1540/Ahd/2016 (ITAT, Surat Bench). 5.1 The Ld. A.R. submitted that the assessee had never applied for conversion of the said agricultural land into non-agricultural land and also never carried out any development acti…

Smt. Swamiappan Punithavathi, Bengaluru vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

ITA 440/BANG/2023[2019-20]Status: DisposedITAT Bangalore17 Aug 2023AY 2019-20

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2019-20

For Appellant: Shri H. Guruswamy, A.RFor Respondent: Shri Sathyasai Rath, D.R
Section 132Section 2(14)

…concrete business. Hence, the nature of land could not be considered as agriculture. 3.4 The ld. CIT(A) further observed that the assessee has relied on the decisions of Hon'ble High Court of Gujarat in the case of Cordhanbhai Kahandas Dalvadi vs. CIT (1981) 127 ITR 664 wherein it was held that the character of the land to be considered as Agricultural Lands on the basis of the entries found recorded in the Revenue Records. In this connection, the Hon'ble Supreme Court in the case of State of UP vs. Nand Kumar Aggarwal AIR 1998 SC 473 held that the lands had been entered in the revenue records as agricultural la…

Sri. Swamiappan Arul Kumar, Bengaluru vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

ITA 439/BANG/2023[2019-20]Status: DisposedITAT Bangalore17 Aug 2023AY 2019-20

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2019-20

For Appellant: Shri H. Guruswamy, A.RFor Respondent: Shri Sathyasai Rath, D.R
Section 132Section 2(14)

…concrete business. Hence, the nature of land could not be considered as agriculture. 3.4 The ld. CIT(A) further observed that the assessee has relied on the decisions of Hon'ble High Court of Gujarat in the case of Cordhanbhai Kahandas Dalvadi vs. CIT (1981) 127 ITR 664 wherein it was held that the character of the land to be considered as Agricultural Lands on the basis of the entries found recorded in the Revenue Records. In this connection, the Hon'ble Supreme Court in the case of State of UP vs. Nand Kumar Aggarwal AIR 1998 SC 473 held that the lands had been entered in the revenue records as agricultural la…

Sri. Swamiappan Anand Kumar, Bengaluru vs. Deputy Commissioner of Income-Tax, Central Circle-1(1), Bangalore

ITA 438/BANG/2023[2019-20]Status: DisposedITAT Bangalore17 Aug 2023AY 2019-20

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2019-20

For Appellant: Shri H. Guruswamy, A.RFor Respondent: Shri Sathyasai Rath, D.R
Section 132Section 2(14)

…concrete business. Hence, the nature of land could not be considered as agriculture. 3.4 The ld. CIT(A) further observed that the assessee has relied on the decisions of Hon'ble High Court of Gujarat in the case of Cordhanbhai Kahandas Dalvadi vs. CIT (1981) 127 ITR 664 wherein it was held that the character of the land to be considered as Agricultural Lands on the basis of the entries found recorded in the Revenue Records. In this connection, the Hon'ble Supreme Court in the case of State of UP vs. Nand Kumar Aggarwal AIR 1998 SC 473 held that the lands had been entered in the revenue records as agricultural la…

Sri. Swamiappan, Bengaluru vs. Deputy Commissioner of Income-Tax, Central Circle-1(1), Bangalore

ITA 437/BANG/2023[2019-20]Status: DisposedITAT Bangalore17 Aug 2023AY 2019-20

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2019-20

For Appellant: Shri H. Guruswamy, A.RFor Respondent: Shri Sathyasai Rath, D.R
Section 132Section 2(14)

…concrete business. Hence, the nature of land could not be considered as agriculture. 3.4 The ld. CIT(A) further observed that the assessee has relied on the decisions of Hon'ble High Court of Gujarat in the case of Cordhanbhai Kahandas Dalvadi vs. CIT (1981) 127 ITR 664 wherein it was held that the character of the land to be considered as Agricultural Lands on the basis of the entries found recorded in the Revenue Records. In this connection, the Hon'ble Supreme Court in the case of State of UP vs. Nand Kumar Aggarwal AIR 1998 SC 473 held that the lands had been entered in the revenue records as agricultural la…

The ITO, Ward-1(3), Jamnagar vs. Shri Maldebhai Naranbhai Varotaria, Jamnagar

In the result, the appeal filed by the Revenue is dismissed

ITA 169/RJT/2016[2012-13]Status: DisposedITAT Rajkot16 Sept 2022AY 2012-13

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyalआयकर अपील सं./Ita No. 169/Rjt/2016 िनधा"रण वष"/Asstt. Years: 2012-2013 Income-Tax Officer, Shri Maldebhai Naranbhai Varotaria, Ward-1(3), Vs. Madhav Corporation, Jamnagar 3Rd Floor, Avantika Complex, Limda Lane Corner, Jamnagar.

For Appellant: Shri Mehul Ranpura, A.RFor Respondent: Shri Sanjeev Jain, CIT. D.R
Section 54BSection 54B(1)

…and is not disputed by AO - 10.2 The above contention of the assessee has not been countered by the learned DR for the Revenue. A.Y. 2012-13 5 10.3 We also find that Hon’ble Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi vs. CIT reported in 127 ITR 664 in similar fact and circumstances has observed as under: It has been observed by the Supreme Court in CWT v. Officer-in-Charge (Court of Wards) , Paigah [1976] 105 ITR 133 that if the law has not been correctly appreciated by the Tribunal, its appreciation of facts is bound to be affected by the wrong approach to the evidence. Now, in the instant…

Sri Kamanahalli Pilla Reddy Nagesh, Bangalore vs. Income Tax Officer, Ward- 4(3)(5), Bangalore

Accordingly, this ground of the assessee is allowed

ITA 1396/BANG/2019[2014-15]Status: DisposedITAT Bangalore21 Jun 2022AY 2014-15

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2014-15 Shri Kamanahalli Pilla Reddy Nagesh, Kamanahalli Village, Kagur The Income Tax Post, Officer, Sarjapura Road, Ward – 4 [3] [5], Anekal Taluk, Bangalore. Vs. Bangalore – 562 125. Pan: Adfpn8365H Appellant Respondent Assessee By : Shri Guruswamy, Itp : Shri V.S. Chakrapani, Cit- Revenue By Dr Date Of Hearing : 01-06-2022 Date Of Pronouncement : 21-06-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against Order Dated 28.03.2019 Passed By Ld.Cit(A)-9, Bangalore For A.Y. 2014-15 On The Following Grounds Of Appeal: “1. The Orders Of The Authorities Below In So Far As They Are Against The Appellant, Are Opposed To Law, Equity, Weight Of Evidence, Probabilities, Facts & Circumstances Of The Case. 2. The Learned Cit[A] Is Not Justified In Upholding The Assessment Order Passed U/S. 143[3] Of The Act Despite The Fact That No Valid Notice U/S.143[2] Of The Act Was Served

For Appellant: Shri Guruswamy, ITP
Section 10(1)Section 143Section 2(14)Section 234Section 292BSection 54B

…ubmitted the smallness of the income derived from sale of agricultural land is also not relevant. 21. The learned counsel further relied on the decision of the Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) 127 ITR 664 and submitted the mere obtaining of conversion order of agricultural land into non-agricultural land is not sufficient to hold that the nature of the agricultural land has been changed. In this case, assessee's representative submitted the assessee obtained permission from the land revenue authorities u/s.63 of the Page 50 of 66 Bombay Tenancy an…

Shri M. Thimmegowda, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle - 1(3), Bangalore

In the result, both the appeals by the assessee are partly allowed

ITA 1036/BANG/2019[2006-07]Status: DisposedITAT Bangalore20 Apr 2022AY 2006-07

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L, CAFor Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 153A

…ubmitted the smallness of the income derived from sale of agricultural land is also not relevant. 21. The learned counsel further relied on the decision of the Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) 127 ITR 664 and submitted the mere obtaining of conversion order of agricultural land into non-agricultural land is not sufficient to hold that the nature of the agricultural land has been changed. In this case, assessee's representative submitted the assessee obtained permission from the land revenue authorities u/s.63 of the Bombay Tenancy and agricultural…

Shri M. Thimmegowda, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle - 1(3), Bangalore

In the result, both the appeals by the assessee are partly allowed

ITA 1035/BANG/2019[2007-08]Status: DisposedITAT Bangalore20 Apr 2022AY 2007-08

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L, CAFor Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 153A

…ubmitted the smallness of the income derived from sale of agricultural land is also not relevant. 21. The learned counsel further relied on the decision of the Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) 127 ITR 664 and submitted the mere obtaining of conversion order of agricultural land into non-agricultural land is not sufficient to hold that the nature of the agricultural land has been changed. In this case, assessee's representative submitted the assessee obtained permission from the land revenue authorities u/s.63 of the Bombay Tenancy and agricultural…

Late Smt.K.Leelavathy, by L/R Shri M.Thimmegowda, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-1(3), Bangalore

In the result, all the appeals by the assessee are partly allowed

ITA 755/BANG/2019[2009-10]Status: DisposedITAT Bangalore18 Apr 2022AY 2009-10

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L, CAFor Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 153CSection 2(14)(iii)

…ubmitted the smallness of the income derived from sale of agricultural land is also not relevant. 21. The learned counsel further relied on the decision of the Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) 127 ITR 664 and submitted the mere obtaining of conversion order of agricultural land into non-agricultural land is not sufficient to hold that the nature of the agricultural land has been changed. In this case, assessee's representative submitted the assessee obtained permission from the land revenue authorities u/s.63 of the Bombay Tenancy and agricultural…

Late Smt.K.Leelavathy by L/R Shri M.Thimmegowda, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-1(3), Bangalore

In the result, all the appeals by the assessee are partly allowed

ITA 754/BANG/2019[2008-09]Status: DisposedITAT Bangalore18 Apr 2022AY 2008-09

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L, CAFor Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 153CSection 2(14)(iii)

…ubmitted the smallness of the income derived from sale of agricultural land is also not relevant. 21. The learned counsel further relied on the decision of the Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) 127 ITR 664 and submitted the mere obtaining of conversion order of agricultural land into non-agricultural land is not sufficient to hold that the nature of the agricultural land has been changed. In this case, assessee's representative submitted the assessee obtained permission from the land revenue authorities u/s.63 of the Bombay Tenancy and agricultural…

Late Smt.K>Leelavathy by L/R Shri.M.Thimmegowda, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-1(3), Bangalore

In the result, all the appeals by the assessee are partly allowed

ITA 753/BANG/2019[2007-08]Status: DisposedITAT Bangalore18 Apr 2022AY 2007-08

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L, CAFor Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 153CSection 2(14)(iii)

…ubmitted the smallness of the income derived from sale of agricultural land is also not relevant. 21. The learned counsel further relied on the decision of the Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) 127 ITR 664 and submitted the mere obtaining of conversion order of agricultural land into non-agricultural land is not sufficient to hold that the nature of the agricultural land has been changed. In this case, assessee's representative submitted the assessee obtained permission from the land revenue authorities u/s.63 of the Bombay Tenancy and agricultural…

Late Smt.K.Leelavathy by L/R Shri M.Thimmegowda, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-1(3), Bangalore

In the result, all the appeals by the assessee are partly allowed

ITA 752/BANG/2019[2006-07]Status: DisposedITAT Bangalore18 Apr 2022AY 2006-07

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L, CAFor Respondent: Shri Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 153CSection 2(14)(iii)

…ubmitted the smallness of the income derived from sale of agricultural land is also not relevant. 21. The learned counsel further relied on the decision of the Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) 127 ITR 664 and submitted the mere obtaining of conversion order of agricultural land into non-agricultural land is not sufficient to hold that the nature of the agricultural land has been changed. In this case, assessee's representative submitted the assessee obtained permission from the land revenue authorities u/s.63 of the Bombay Tenancy and agricultural…

Mr K. P. Manjunatha Reddy, Bangalore vs. The Income Tax Officer, Ward 4(3)(2), Bangalore

In the result, the appeal filed by the assessee is allowed

ITA 977/BANG/2019[2014-15]Status: DisposedITAT Bangalore25 Mar 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2014-15

For Appellant: Shri Thirumala Naidu, A.RFor Respondent: Smt. Priyadarshini Mishra, D.R
Section 10(1)Section 143(3)Section 2(14)Section 271(1)(c)

…ubmitted the smallness of the income derived from sale of agricultural land is also not relevant. 21. The learned counsel further relied on the decision of the Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) 127 ITR 664 and Mr. K.P. Manjunatha Reddy, Bangalore Page 49 of 66 submitted the mere obtaining of conversion order of agricultural land into non-agricultural land is not sufficient to hold that the nature of the agricultural land has been changed. In this case, assessee's representative submitted the assessee obtained permission from the land revenue autho…

Shri D.Dasappa, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, both the appeals of the assessee are partly allowed

ITA 2223/BANG/2016[2009-10]Status: DisposedITAT Bangalore09 Feb 2022AY 2009-10

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri L. Bharath, CAFor Respondent: Capt. Pradeep Shoury Arya, Addl.CIT(DR)(ITAT)
Section 132Section 153CSection 2(14)Section 80

…ubmitted the smallness of the income derived from sale of agricultural land is also not relevant. 21. The learned counsel further relied on the decision of the Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) 127 ITR 664 and submitted the mere obtaining of conversion order of agricultural land into non-agricultural land is not sufficient to hold that the nature of the agricultural land has been changed. In this case, assessee's representative submitted the assessee obtained permission from the land revenue authorities u/s.63 of the Bombay Tenancy and agricultural…

Shri D.Dasappa, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, both the appeals of the assessee are partly allowed

ITA 2222/BANG/2016[2008-09]Status: DisposedITAT Bangalore09 Feb 2022AY 2008-09

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri L. Bharath, CAFor Respondent: Capt. Pradeep Shoury Arya, Addl.CIT(DR)(ITAT)
Section 132Section 153CSection 2(14)Section 80

…ubmitted the smallness of the income derived from sale of agricultural land is also not relevant. 21. The learned counsel further relied on the decision of the Gujarat High Court in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) 127 ITR 664 and submitted the mere obtaining of conversion order of agricultural land into non-agricultural land is not sufficient to hold that the nature of the agricultural land has been changed. In this case, assessee's representative submitted the assessee obtained permission from the land revenue authorities u/s.63 of the Bombay Tenancy and agricultural…

ITO, Dehradun vs. Smt. Meera Thapa Prop., Dehradun

In the result the appeal of the revenue is dismissed and cross objection of the assessee is allowed

ITA 191/DEL/2015[2010-11]Status: DisposedITAT Delhi10 Jul 2018AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishiito, Vs. Meera Thapa Prop, Ward-1(5), M/S. Shahid Krshna Filing Dehradun Station, Mussoorie Diversion Road, Dehradun Pan: Aezpt9431K (Appellant) (Respondent)

For Appellant: NoneFor Respondent: None
Section 143(3)Section 50CSection 80I

…area would explain why the assessee sold the land n sq.mts. and why the cost of the land appreciated considerably on account of its possible use for industrial purposes. However, as has been pointed out in the case of Gordhanbhai Kahandasdatwadi v. CIT [1981) 127 ITR 664 (Guj.) potential non-agricultural use of the land does not alter the character of land from agricultural to non-agricultural land and the correct tests whether on the date of sale the land was agricultural or not. Furthermore, as pointed out by the assessee, the mere fact that her land were included into a industrial area would not change the cha…

Asst.C.I.T., Bangalore vs. Shri. M.R. Anandaram (HUF), Bangalore

In the result, the appeals of the Revenue and the Cross Objections of the assessee are dismissed

ITA 1169/BANG/2015[2007-08]Status: DisposedITAT Bangalore27 May 2016AY 2007-08

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodia

For Respondent: Shri Sanjay Kumar, CIT-III(DR)
Section 143(3)Section 148Section 2(14)

…ued to that effect. Even for the revenue, there is no case that the land has been used for the intended purpose. 38. In the decision of Gujarat High Court relied upon by the DR, in the case of Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (1981) )27 ITR 664, the Hon'ble High Court held that the potential non-agricultural use does not alter the character of the land. This was a case wherein the land was purchased in 1954 and, subsequently, sold in 1969. The entries in the revenue records showed that the land was agricultural continued to be so. The land revenue paid was for agricultural use, but permi…

Gordhanbhai Kahandas Dalwadi v. Commissioner of Income-tax (127 ITR 664) — Cited in 18 Judgments | BharatTax