Jasvant Baraiya Vs ITO (ITAT Ahmedabad)
In the case of Jasvant Baraiya vs. Income Tax Officer (ITO), the Income Tax Appellate Tribunal (ITAT), Ahmedabad, addressed a dispute over the treatment of sale consideration under Section 69A of the Income Tax Act, 1961. The appellant, an agriculturist, sold ancestral agricultural land for ₹4.86 crores, with his share amounting to ₹1.21 crores. Believing no tax applied to the sale of ancestral land, the appellant did not report the transaction or file returns for the relevant assessment year. Following multiple non-compliances with notices from the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) [CIT(A)], an order under Sections 147 and 144 of the Act was passed, adding the entire sale consideration as unexplained income under Section 69A. The CIT(A) subsequently upheld the AO’s decision.
The ITAT considered the appellant’s claim that procedural lapses and non-compliance were due to a misunderstanding, emphasizing the need for due process. The appellant offered to rectify the default and agreed to pay a cost of ₹5,000 to the Prime Minister’s National Relief Fund as a goodwill gesture. The ITAT set aside the previous orders, allowing the appeal for statistical purposes. It directed the AO to reassess the case de novo, ensuring the appellant receives an opportunity for compliance. This decision underlines the importance of procedural adherence and offers the appellant a fresh chance to present his case.
