ITAT Slams AO for Ignoring Co-ownership – Taxing Entire Sale Proceeds of Rural Land Is Unsustainable

Parvatiben Gohil Vs ITO (ITAT Ahmedabad) Assessee, was one of the 20 co-owners of a property situated in a rural area. The property was sold,  &  the total consideration for the entire land was ₹38,25,000/-. AO, however, treated the entire amount as short-term capital gain in Assessee’s hands, ignoring that she was only a fractional co-owner. Assessee contended that her actual share was only ₹1,77,000/-, being 1/20th of the sale value,  &  the land in question was rural agricultural land, which is not a “capital asset” u/s 2(14)(iii) . Assessee’s Argument The land sold...