Narottam Atmaram Warde Vs ITO (ITAT Pune)
ITAT Pune Restores Rural Agricultural Land Case – CIT(A) Cannot Dismiss Appeal for Non-Prosecution; Capital Gain Issue Remand
In Narottam Atmaram Warde vs ITO (AY 2012-13), the ITAT Pune condoned a 413-day delay and allowed the assessee’s appeal for statistical purposes by setting aside the CIT(A)’s order. The dispute involved taxation of ₹19.02 lakh as capital gains on sale of land, where the assessee claimed the property was rural agricultural land outside the definition of “capital asset” u/s 2(14).
The Tribunal observed that CIT(A) dismissed the appeal for non-prosecution without deciding issues on merits, which violates sec 250(6). Relying on Bombay HC ruling in Premkumar Arjundas Luthra (HUF), ITAT reiterated that appellate authorities must adjudicate appeals on merits and cannot dismiss them merely due to non-appearance.
ITAT also noted factual gaps — such as absence of evidence regarding municipal distance and agricultural character — and emphasized that revenue must establish whether land is a capital asset. Considering the registered sale deed dated 31.01.2012 reproduced on page 6, the matter was restored to CIT(A) for fresh adjudication with directions to grant proper opportunity and examine evidence afresh.
FULL TEXT OF THE ORDER OF ITAT PUNE
