KAJAL CO.OP. HOUSING SOCIETY LIMITED,AHMEDABAD V. THE ITO, WARD-3(1)(2), AHMEDABAD

ITA 1611/AHD/2025

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The case involves Kajal Co-op. Housing Society Limited, the appellant, contesting the decision of the National Faceless Appeal Centre (NFAC), which confirmed the Assessing Officer's (AO) decision to tax the sale of plots as 'Capital Gains' instead of treating it as 'Business income'. The appellant also challenged the application of section 50C of the Income Tax Act, which led to an addition of Rs.1,10,76,786 towards the sale of plots. Additionally, the appellant contested the non-granting of deduction for expenses incurred and the inclusion of Rs.81,900 as interest income without considering the relief accepted by the AO in the Remand Report. The Tribunal found that the revenue authorities did not adequately address the issue of 'stock in trade' and capital asset, leading to the decision to remand the case back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780152 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 25-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UDAY KISHANRAO KAKNE
• Assessee Lawyers: MEHUL K PATEL
• Keywords: Set aside; Business income; Capital asset; Sale consideration of property below Jantri Value; Capital Gains
• Section: 50C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.1611/Ahd/2025 (Assessment Year: 2013-14) Kajal Co-op. Housing Society Limited, 1st Floor Aarohi Complex, Near Pal 444 200 Ft. Ring Road, Bopal, Ahmedabad-380058. [PAN :AAAA6565 F] Vs. The Income Tax Officer, Ward-3(1)(2), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Mehul K Patel, AR Respondent by: Shri Uday Kishanrao Kakne, Sr. DR Date of Hearing 06.10.2025 Date of Pronouncement 07.10.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, vide order dated 16.06.2025 relevant to the Assessment Year 2013-14. 2. The assessee has raised the following grounds of appeal: 1. That on facts and in law, the learned NFAC has grievously erred in confirming the action of AO in taxing the sale of plots as 'Capital Gains' instead of treating it as 'Business income of the appellant. Printed from counselvise.com ITA No. 1611/Ahd/2025 Asst. Year : 2013-14 - 2– 2. That on facts and in law, the learned NFAC has grievously erred in confirming the action of AO to apply the provisions of section 50C of the and the addition in confirming Act, Rs.1, 10,76,786/- made towards sale of plots. 3. That on facts, and in law, the learned NFAC has grievously erred in not granting the deduction of expenses incurred by the appellant, and in taxing the gross receipts. 4. In the alternate, on facts, and in law, the learned NFAC has erred in not considering the relief accepted by AO in the Remand Report. 5. That on facts, and in law, the learned NFAC has interest income Rs.81,900/-grievously erred in confirming the addition of without considering the relief accepted by AO in the Remand Report. 6. The appellant craves leave to add, alter, amend any ground of appeal. 3. On perusal of the record, we find that a notice of hearing was issued to the assessee to furnish necessary details, clarifications, and explanations to substantiate its claim. However, after examining the assessee’s submissions/rejoinder and the remand report of the Assessing Officer, the Ld. CIT(A) concurred with the findings of the Assessing Officer regarding the addition made on account of the sale of immovable properties. The Revenue authorities failed to bring on record the issue of “stock in trade” and capital asset cogently. In the interest of justice, we therefore set aside the order of the Ld. CIT(A) and restore the matter to the file of the Assessing Officer for de novo assessment. The assessee is directed to submit all relevant bank statements, documents, and explanations before the Assessing Officer and to comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. Printed from counselvise.com ITA No. 1611/Ahd/2025 Asst. Year : 2013-14 - 3– 4. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 07.10.2025. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 07.10.2025 MV आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "