Ram Manohar Kumar Vs ITO (ITAT Delhi)
Ex-Parte Capital Gains on Land Sale Set Aside: ITAT Restores Matter to AO to Examine Agricultural Land Claim & Correct Share
Assessment was framed ex parte u/s 144 r.w.s. 147 based on AIR information treating assessee’s share in land sale consideration of ₹4.25 crore as 1/4th & taxing long-term capital gains of ₹1.06 crore without allowing any cost of acquisition.
Before Tribunal, Assessee contended that his share was only 1/6th & that the land sold was agricultural land situated 12–15 km from Ghaziabad municipal limits, hence not a “capital asset” u/s 2(14); alternatively, deduction for cost/FMV as on 01.04.1981 was sought.
Tribunal noted that both AO & NFAC had passed orders ex parte & that crucial evidences such as bhulekh, khasra-khatauni & fasli records were now produced. In the interest of justice, ITAT set aside the orders & restored the matter to AO for de novo adjudication to examine nature of land, distance from municipality, correct ownership share & computation of capital gains, if any, after considering all evidences. Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. The appeal in ITA No.145/Del/2025 for AY 2011-12, arises out of the order of the ld National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] in Appeal No. ITBA/NFAC/S/250/2024-25/1071458269(1) dated 23.12.2024 against the order of assessment passed u/s 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 22.12.2016 by the Assessing Officer, ITO, Ward-2(2), Ghaziabad (hereinafter referred to as ‘ld. AO’).
