CHUDAJI THAKOR,VASAJADA V. INCOME TAX OFFICER, WARD 1, GANDHINAGAR, GANDHINAGAR

ITA 2048/AHD/2025

AI Insights

The case involves two appeals filed by Chudaji Thakor against the orders of the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment year 2018-19. The appeals challenged the penalties imposed under sections 270A and 271AAC of the Income Tax Act, which were based on the alleged underreporting of income from the sale of rural agricultural land. The primary contention was that the sale of such land should not be considered underreporting as it is not a capital asset under section 2(14) of the Act, and thus, not subject to capital gains tax. The Tribunal had previously set aside the quantum appeal to the Assessing Officer for a fresh order, which influenced the decision to remand the penalty issues as well.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829482 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Ahmedabad
• Assessment Year: misc
• Appeal Filed On: 30-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHOK KUMAR SUTHAR
• Assessee Lawyers: DIVYA AGRAWAL
• Keywords: Set aside; Capital asset
• Section: 147; 144; 2(14)

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before Ms. Suchitra Kamble, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Chudaji Thakor, Vasajada Dhedia, Garodia, Kalol, Gandhinagar PAN: AOVPT3573N (Appellant) Vs The ITO, Ward-1 Gandhinagar (Respondent) Assessee by: Shri Divya Agrawal, A.R. Revenue by: Shri Ashok Kumar Suthar, Sr. D.R. Date of hearing : 08-01-2026 Date of pronouncement : 13-01-2026 आदेश/ORDER Per Suchitra Kamble, Judicial Member: These both the appeals are filed against the orders both dated 25-08-2025 & 06-08-2025 respectively passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2018-19. 2. The grounds of appeals are as under:- ITA No. 2047-Ahd-2025 “1 Learned CIT(A), NFAC had erred in dismissing appeal by appellate order dt. 25-08-2025 of assessee against Penalty order u/s 270A of the Act. In as much as, i. Quantum appeal against order of A.O. u/s 144 r.w.s 147 of the Act is set aside to A.O. for fresh order by Hon. ITAT in ITA No. 301/Ahd/2025 dt. 22-05-2025. ITA Nos. 2047 & 2048/Ahd/2025 Assessment Year 2018-19 Printed from counselvise.com I.T.A Nos. 2047 & 2048/Ahd/2025 Chudaji Thakor, A.Y. 2018-19 2 ii. Ld. CIT(A) had not considered the reply of assessee dt. 25-08- 2025 to Notice u/s 250 of the Act fixing hearing on 25-08-2025. Assessee stated that quantum appeal is set aside by Hon. ITAT & order of Hon. ITAT was also sent to Ld. CIT(A), NFAC. 2 Learned CIT(A), NFAC had erred in treating sale of rural agricultural land as under reporting of income. In as much as, sale of agricultural land is not capital asset u/s 2(14) of the Act. 3 Learned CIT(A), NFAC had erred in treating sale of rural agricultural land in A.Y.-2018-19 whereas sale of rural agricultural land is A.Υ.- 2019-20.” ITA No. 2048-Ahd-2025 “1 Learned CIT(A), NFAC has erred in confirming Penalty of Rs.2,94,000 levied by A.O. In as much as, Ld. CIT(A) has confirmed Penalty on the ground that Ld. CIT(A), NFAC had dismissed quantum appeal of assessee against order of A.O. u/s 144 r.w.s. 147 of the Act. However, Hon. ITAT had set aside order of Ld. CIT(A), NFAC to A.O. for fresh assessment in ITA No. 301/Ahd/2025 dt. 22/05/2025. 2 Learned CIT(A), NFAC has erred in confirming Penalty u/s 271AAC(1) of the Act. In as much as, Ld. A.O. had taxed sale of Rural Agricultural Land which is not capital assets u/s 2(14) of the Act. LTCG is exempt. There is no question of Penalty. 3 Learned CIT(A), NFAC has erred in confirming Penalty u/s 271AAC(1) of the Act. In as much as, the sale of Rural Agricultural land is in A.Y.-2019-20. No Penalty can be levied in A.Y.-2018-19.” 3 The ld. A.R. submitted that in the quantum appeal of the said assessee for the same assessment year 2018-19 where the penalty u/s. 270A & 271AAC of the Act was initiated is remanded back to the file of the Assessing Officer by the Tribunal vide order dated 22ndMay, 2025 (ITA 301/Ahd/2025). Therefore, the ld. A.R. submitted that the matter may be disposed off accordingly. Printed from counselvise.com I.T.A Nos. 2047 & 2048/Ahd/2025 Chudaji Thakor, A.Y. 2018-19 3 4. The ld. D.R. relied upon the assessment order and the order of the penalty as well as CIT(A). 5. We have heard both the parties and perused all the material available on record. It is pertinent to note that the very inception of the assessment order which was passed in the assessee’s case on the basis quantum addition, the same was set aside to the file of the Assessing Officer for the reasons stated in para 7 of the said order dated 22nd May, 2025 passed by the Tribunal. Therefore, it will be appropriate to remand back this issue of penalty u/s. 270A and 271AAC of the Act to the file of the Assessing Officer in respect of the direction. The appeals of the assessee in both the cases will have to be decided in consonance with the direction of the Assessing Officer passed in the remand back the matter. Therefore, the appeals of the assessee are partly allowed for statistical purpose. 6. In the result, both the appeals of the assessee are partly allowed for statistical purpose. Order pronounced in the open court on 13-01-2026 Sd/- Sd/- (Narendra Prasad Sinha) (Suchitra Kamble) Accountant Member Judicial Member Ahmedabad : Dated 13/01/2026 a.k. आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) Printed from counselvise.com I.T.A Nos. 2047 & 2048/Ahd/2025 Chudaji Thakor, A.Y. 2018-19 4 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद Printed from counselvise.com "