Aranya Association Vs ITO (ITAT Ahmedabad)
Phantom Land, Phantom Gain – ITAT Sends ₹11.33 Crore Capital Gain Back to Reality Check- Matter Remanded for Fresh Examination – ITAT Ahmedabad Sets Aside Ex Parte Assessment of ₹11.33 Cr LTCG on Land Transactions
Ahmedabad ITAT remanded the matter back to AO for de novo assessment, setting aside the ex parte orders passed by the lower authorities.
AO had made an addition of ₹11.33 crore on account of Long-Term Capital Gains, alleging that Assessee association had transferred immovable property. Assessee contended that it was never the owner of the property, had not made any purchase payments, & had not received any sale consideration. It claimed that the transaction merely represented a regularization of title by transferring the land to its actual owners.
CIT(A)/NFAC dismissed the appeal ex parte, holding that the assessee failed to produce evidence or documents to substantiate its contentions.
Before the Tribunal, the assessee requested a fresh opportunity to present relevant records, including bank statements and ownership documents. Observing that the real issue was not examined properly by the revenue authorities, the ITAT directed that the matter be re-examined afresh, allowing the assessee to furnish all details while cautioning against unnecessary adjournments.
