ITAT Pune Rules Land Sold to Developer as Rural Agricultural Land, Deletes ₹2.74 Cr Addition

Ashok Somnath Sonawane Vs ITO (ITAT Pune) Pune Tribunal examined whether land sold to a developer was rural agricultural land exempt from capital gains tax or taxable as a capital asset u/s 2(14). Assessee had originally been assessed u/s 143(3) in Jan 2016 with exemption u/s 54B allowed on sale of agricultural land. Later, AO reopened assessment u/s 147 citing audit objection that land was sold to non-agriculturist company for non-agricultural purposes, hence 54B deduction was wrongly allowed. AO invoked SC ruling in Sarifabibi Mohamed Ibrahim (204 ITR 631) & adopted stamp duty valuation,...