Balasaheb Vitthal Shinde Vs ITO (ITAT Pune)
Rural or Non-Agri? ITAT Pune Reopens Capital Gains on Sale of Land
From Farmland to Capital Asset? ITAT Orders Fresh Look- When Cultivation Evidence Speaks, Capital Gains Wait- Satellite Images & Affidavits Tilt the Balance: Agri-Land Issue Reopened
In Balasaheb Vitthal Shinde vs. ITO, Ward-5(4), Pune (ITA No.674/PUN/2025, AY 2011-12; order dated 29-12-2025), the Pune Bench “A” of ITAT dealt with reassessment proceedings where the Assessee’s sale of land was treated as transfer of a capital asset, resulting in short-term capital gain of ₹49.44 lakh and allied additions. The AO had reopened the case on the ground that the Assessee had not filed a return and had sold immovable property for ₹75 lakh. Holding that the land sold was non-agricultural, the AO brought the gains to tax u/s 143(3) r.w.s. 147. The Ld. CIT(A)/NFAC, after calling for a remand report, upheld the assessment.
Before the Tribunal, the Assessee produced extensive additional evidence—including affidavits of agricultural labourers, tractor owner, mortgage loan documents, and satellite Google images certified by a licensed architect—to demonstrate that the land was rural agricultural land under active cultivation and that development activity commenced only much later. Relying on the Bombay High Court ruling in Smt. Prabhavati S. Shah vs. CIT (1998), the ITAT held that these evidences go to the root of the matter and deserved admission.
Accordingly, the Tribunal admitted the additional evidences and restored the issue to the file of the AO for fresh adjudication after granting due opportunity to the Assessee, with a clear direction to cooperate without seeking adjournments. The appeal was thus allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal filed by the assessee is directed against the order dated 26.11.2024 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2011-12.
