Mukul Monga Vs ITO (ITAT Delhi)
Delhi ITAT Sets Aside Capital Gains Addition on Sale of Agricultural Land: Goetze Bar Not Applicable at Appellate Stage
Goetze Stops AO, Not Appellate Justice: ITAT Revives Agri-Land Claim: No Revised Return, Yet Claim Lives: Agricultural Land Issue Remanded
Distance Certificate Ignored, Justice Restored by ITAT; Capital Asset or Not? ITAT Says Decide on Evidence, Not Technicalities
Delhi ITAT ‘C’ Bench in Mukul Monga Vs. ITO [ITA No. 2936/Del/2025, AY 2017-18, order dated 31.12.2025] held that CIT(A)/NFAC erred in rejecting Assessee’s claim that land sold was agricultural and not a capital asset merely on the ground that no revised return was filed. Assessee had produced documentary evidences including Fard, Girdawari, distance certificate from Municipal Corporation of Gurgaon and sale deed to establish that land was situated beyond 8 km from municipal limits and hence excluded from definition of “capital asset” u/s 2(14)(iii)(b). Tribunal observed that CIT(A) wrongly invoked Goetze (India) Ltd. to summarily reject claim without examining evidences, ignoring settled law that appellate authorities are empowered to consider legal claims even if not made through revised return. Holding that non-consideration of evidence defeated substantial justice, Tribunal set aside orders of AO and CIT(A) and restored matter to AO for fresh adjudication after granting fair opportunity. Appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT DELHI
