Kalubhai Chauhan Patel Vas Vs ITO (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT) Ahmedabad has set aside an assessment order related to the sale of agricultural land by Kalubhai Chauhan Patel Vas, directing verification of additional evidence. The case involved an individual agriculturist who sold land for ₹82,00,600 in the Assessment Year 2018-19 but did not initially file a tax return. The assessing officer, upon reopening the case under Section 147, treated the transaction as long-term capital gain. The assessee later argued that the land was agricultural and located 10 km beyond municipal limits, making it exempt under Section 2(14)(iii). However, the lower authorities rejected his claim, citing the land’s proximity to Sanand Municipality instead of Ahmedabad Municipal Corporation.
During the ITAT proceedings, the assessee submitted additional documents, including a distance certificate from the Moraiya Gram Panchayat and census records, to support his exemption claim. Acknowledging the significance of these documents, ITAT remanded the case to the jurisdictional assessing officer for reconsideration. The tribunal instructed the officer to evaluate the new evidence and determine the land’s status as a capital asset while ensuring a fair hearing for the assessee.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the Assessee as against the order dated 22.12.2019 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the exparte reassessment order passed under section 147 r.w.s. 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2018-19.
