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IN THE INCOME TAX APPELLATE TRIBUNAL

“D” BENCH, AHMEDABAD

BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEMBER AND

SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER

ITA No. 1354/AHD/2025

Assessment Years: 2020-21

Raghvendrasinh Income Tax Officer –

Dharmendrasinh Ward – 1(10),

Chudasama, Bhavnagar, Gujarat-

1 Opp. Hotel Yashpark, 364001

Bhavnagar Highway, Barwala-

Vs.

Ghelasha, Ahmedabad,

Gujarat - 388246

[PAN – ACZPC4061C]

(Appellant) (Respondent)

Assessee by Shri Chetan Agarwal, AR

Revenue by Shri Rameshwar P Meena, SR-DR

Date of Hearing 21.04.2026

Date of Pronouncement 13.05.2026

O R D E R

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of National

Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’]

dated 02.06.2025 for the Assessment Year (A.Y.) 2020-21 in the

proceedings u/s. 147 r.w.s. 144B of the Income Tax.

2. The brief facts of the case are that the assessee did not file his

original return of income for A.Y. 2020-21. The AO had received an

information that assessee had entered into purchase and sale

ITA No.1354/Ahd/2025

Raghvendrasinh Dharmendrasinh Chudasama Vs. ITO, AY- 2020-21

2

transactions of immovable properties during the year. On the basis of this

information the case of the assessee was reopened u/s. 147 of the Act

after passing an order u/s 148A(d) of the Act on 22.03.2024. In the course

of assessment, the AO had made addition of Rs. 5,07,40,136/- on account

of long term capital gain (LTCG) derived on sale of properties. The LTCG

was computed on the basis of stamp duty value of the properties and after

allowing deduction for indexed cost of acquisition. Further, addition of

Rs.12,92,000/- was also made on account of short term capital gain

(STCG) in respect of another property. The assessment was completed

u/s. 147 r.w.s. 144B of the Act on 23.04.2025 at total income of

Rs.5,22,72,636/- and agricultural income of Rs. 1,25,340/-.

3. Aggrieved with the order of the AO, the assessee had filed an

appeal before the first appellate authority, which was decided by the

learned CIT(A) vide the impugned order and the appeal of the assessee

was partly allowed.

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4. Now the assessee is in second appeal before us. The following

grounds have been taken in this appeal:

1. The Ld. CIT(A) erred in law as well as on facts in upholding an addition of Rs.

5,07,40,136/- made by Ld. AO being long term capital gain on sale of property

treating the same as transfer u/s. 2(47) though due to dispute of title said

transaction was cancelled subsequently.

2. The Ld. CIT(A) erred in law as well as on fact in upholding adoption of value as

per stamp duty applying the provisions of section 50C without referring the

matter to departmental valuation officer.

Additional Ground of appeal

The Ld. AO erred in law as well as on fact in applying provisions of section 50C

disregarding fact that the land was sold and possession was handed over in

2005.

ITA No.1354/Ahd/2025

Raghvendrasinh Dharmendrasinh Chudasama Vs. ITO, AY- 2020-21

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5. Shri Chetan Agarwal, the Ld. AR of the assessee submitted that the

properties in respect of which LTCG of Rs. 5,07,40,136/- was worked out

by AO, the sale deed of those properties were subsequently cancelled

vide registered cancellation deeds dated 15.07.2024. He further

submitted that the assessee was buyer of the properties and not the seller.

Therefore, the addition made by the AO u/s. 50C of Act was not correct

as no LTCG was derived by the assessee.

6. Per contra, Shri Rameshwar P Meena, the Ld. SR-DR submitted

that the assessee did not take any such plea before the AO that he was

the buyer of the properties and not the seller. Rather a submission was

made that the two properties were acquired by him in the Financial Year

2005-06 for a consideration of Rs.7,50,000/-, in respect of which

deduction for indexed cost of acquisition was allowed by the AO. The Ld.

SR-DR submitted that though the assessee had taken a plea before the

Ld. CIT(A) that the sale deeds dated 19.09.2019 were cancelled vide