Arjunsinh Solanki Vs ITO (ITAT Ahmedabad)
Ahmedabad ITAT Remands LTCG Assessment; AO Directed to Consider Valuation Report and Additional Evidence
The Ahmedabad ITAT allowed the assessee’s appeal for statistical purposes, setting aside the assessment relating to long-term capital gains (LTCG) and restoring the matter to the Assessing Officer for fresh adjudication after considering the valuation report and other additional evidence produced by the assessee.
The assessee, a farmer and one of twelve co-owners of agricultural land, had not filed a return of income on the belief that his share of the capital gains was below the taxable limit. During reassessment under sections 147 read with 144, the Assessing Officer computed the assessee’s LTCG at ₹8.22 lakh, whereas the assessee contended, on the basis of a Government-approved valuer’s report, that the taxable LTCG was only ₹2.39 lakh, which was below the basic exemption limit.
The Tribunal noted that the assessee had sought additional time before the Assessing Officer to obtain the valuation report, but the assessment was completed before the report could be furnished. It further observed that although the assessee had filed an application for admission of additional evidence before the CIT(A), including the valuation report, the appellate authority failed to consider the application and dismissed the appeal without examining the additional evidence.
Holding that the assessee should be afforded a proper opportunity to substantiate his claim, the Tribunal restored the issue of computation of LTCG and consequential tax liability to the Assessing Officer for de novo adjudication. The Assessing Officer was directed to consider all documents and evidence, including the valuation report, and decide the matter afresh after granting the assessee a reasonable opportunity of being heard.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
