IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’: NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA No.883/DEL/2021, A.Y. 2010-11 ITA No.884/DEL/2021, A.Y. 2011-12 Sh. Chandra Prakash Goel vs. Pr. CIT Prop. M/s Chandra Bricks Field, Ghaziabad Village Dhanaura, Uttar Pradesh Hapur-245 101, Uttar Pradesh (PAN : AATPG4288R)

(APPELLANT) (RESPONDENT)

ASSESSEE BY : Dr. Rakesh Gupta, Advocate Shri Saksham Agarwal, Advocate REVENUE BY : Ms. Monika Singh, CIT- DR Date of Hearing: 05.01.2026 Date of Order : 06.03.2026

ORDER

PER S.RIFAUR RAHMAN,AM:

1. The assessee has filed appeal against the order of the Learned Pr. Commissioner of Income-Tax, Ghaziabad [“Ld. CIT(A)”, for short] dated 08.03.2021 for the Assessment Year 2010-11 and 2011-12 passed under section

263 of the Income-tax Act, 1961 (for short ‘the Act’).

2. Both the appeals are interconnected having common issues. Both the appeals are heard together and disposed off by this common order. We take the lead appeal as ITA NO. 883/Del/ 2021 (AY 2010-11)

3. Brief facts of the case are that, the assessee converted his agricultural land into residential plots, built service road and sold these plots to different persons on different dates i.e. developed colony in the name of Prahalad Nagar. Total amount of Rs. 66,50,000/- received during the year. Total area including road comes at 6141 Sq. Yards and assessee purchased the above piece of land on 19/04/1977, the land measuring 4.33 bighas for Rs. 32,000/- and other expenditure including stamp was Rs.3705/-. Thus total cost comes at Rs. 35,705/- and share of cost for Khasra no.309/2 is Rs.4120/-, the Proportionate cost of acquisition of 6141 Sq. yards used during the year out of 14873 Sq. yards (10vishwa) at Rs. 1890/-. This amount of cost of acquisition as on 19/04/1977 is taken as cost of acquisition on 01/04/1981. Assessee has converted his land to stock in trade during the financial year 2009-10. After indexing (1890x563/100) cost of the agriculture land converted into stock in trade as on 01/04/2009 comes at Rs. 10,641/-. Assessee has claimed expense of Rs.4,00,300/- for development of colony etc. Thus reducing total amount of Rs. 4,10,941/- (10641+400300) from sale receipts of Rs. 66,50,000/-, net business income being adventure in the nature of trade was determined at Rs. 62,39,059/- (66,50,000-4,10,941). In view of the facts discussed above the amount of Rs.62,39,059/- is added to income of the assessee treating income from business in the nature of trade.

3.1 Further, the AO had made addition of Rs. 3,90,000/- also to the total income of the assessee on account of disallowance of soil and Pathai expenses. The appeal filed by the assessee before the first appellate authority against the above referred assessment order was dismissed by the Ld. CIT(A), Ghaziabad vide order dated 17.02.2014 in appeal No. 288/2012-13/Gzb-HPR/146. Aggrieved with the above stated order of the Ld. CIT(A), Ghaziabad, the assessee had preferred appeal before the ITAT, New Delhi. The coordinate bench decided the appeal vide its order dated 20th March, 2017 in ITA No. 3032/Del/2014, in which the matter was remitted back to the file of Assessing Officer with the following direction, in particular reference to the addition of Rs. 62,39,059/-.

3. .........In view of above circumstances, we feel it appropriate to restore the issue to the file of the Assessing Officer to compute Capital Gains in terms of Section 45(2) of the Act and business income from the transaction, in view of our finding above. While computing the capital gain, the Assessing Officer may examine the fair market value of the land in accordance with law".

4. In the set aside proceedings, the Assessing Officer completed the assessment u/s 143(3)/ 254 of the Act and passed the assessment order on 24.12.2018, determining the total loss of Rs. 2,29,920/-. While verification of the assessment records, Ld. PCIT, Ghaziabad observed that the assessment ord