ACIT Vs Krupesh Jayantilal Patel (ITAT Ahmedabad)
The Ahmedabad “D” Bench of the Income Tax Appellate Tribunal dismissed the Revenue’s appeal for AY 2013-14, holding that the land sold by the assessee was agricultural land and did not qualify as a “capital asset” under section 2(14) of the Income-tax Act.
The Tribunal noted that the issue stood squarely covered by earlier co-ordinate Bench decisions involving the same transaction and joint owners, wherein it was conclusively held that the land was situated beyond 5 km from the municipal limits of Gandhinagar Municipal Corporation, as confirmed by official communications and relevant State notifications. Consequently, no capital gains could arise on its sale.
In view of the binding precedents, the Tribunal found no merit in the Revenue’s challenge and dismissed the appeal. The assessee’s cross-objection challenging reopening was not pressed and was accordingly dismissed.
Thus, both the Revenue’s appeal and the assessee’s cross-objection were dismissed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal by the Revenue and the corresponding Cross Objection by the assessee have been directed against the order of the Learned Commissioner of Income Tax (Appeals)-11, Ahmedabad [hereinafter referred to as ‘CIT(A)’], dated 21/02/2025, passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2013-14.
