Ketankumar Thakorbhai Patel Vs ITO (ITAT Ahmedabad)
The appeal before the Income Tax Appellate Tribunal, Ahmedabad challenged the order dated 30.09.2025 passed by the Additional/Joint Commissioner of Income Tax (Appeals), Agra for Assessment Year 2011–12. The assessee contested the confirmation of several additions made by the Assessing Officer and sustained by the appellate authority.
The assessee had initially not filed a return of income for the relevant assessment year. Based on information received through the Annual Information Return (AIR), the department found that the assessee had sold an immovable property for ₹37,33,200 registered at the Sub-Registrar Office, Anand on 05.08.2010. Since no return had been filed, the case was reopened after recording reasons and obtaining approval. A notice under Section 148 was issued on 27.03.2018 and served on the assessee.
In response, the assessee filed a return on 13.12.2018 declaring income of ₹1,47,950 and reporting short-term capital gains. The assessee calculated short-term capital gains by considering full consideration of ₹18,66,750 after reducing cost of acquisition of ₹12,97,375 and cost of improvement of ₹3,50,000. After examining the submissions, the Assessing Officer concluded that the assessee had earned short-term capital gains of ₹11,38,750 as against ₹2,19,375 declared by the assessee. The difference of ₹9,19,375 was treated as additional income and added to the returned income.
