Ravindrabhai Shankarbhai Patel Vs ITO (ITAT Ahmedabad)
The Ahmedabad Bench of the ITAT allowed the assessee’s appeal for statistical purposes and set aside the CIT(A)’s order that had denied deductions under Sections 54B and 54F for AY 2015-16, resulting in taxation of long-term capital gains of ₹1.66 crore. The assessee had sold agricultural land and claimed reinvestment benefits in new agricultural land and a residential property, including deposits under the Capital Gain Account Scheme. The disallowance by the AO and confirmation by the CIT(A) were primarily on the ground that substantial investments and deposits were made after the due date under Section 139(1).
Before the Tribunal, the assessee produced additional crucial evidence—bank confirmations, third-party certificates, MOUs explaining additional consideration aligned to jantri value, and clarifications on payment routing—which had not been examined by the lower authorities. The ITAT noted that the core legal issue—whether investments made after the Section 139(1) due date but before filing a return under Section 139(4) qualify for deductions under Sections 54B(2) and 54F(4)—had not been comprehensively adjudicated in light of the assessee’s facts and cited precedents.
In the interest of natural justice, the Tribunal restored the matter to the CIT(A) for de novo consideration, directing examination of all additional evidence and a speaking order after granting due opportunity to both sides
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
