₹60.46 Lakh Rural Agricultural Land Capital Gains Case Remands for Fresh Assessment: ITAT Condoning 935‑Day Appeal Delay Cited Due to COVID‑19 [Read Order]

In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Rajkot Bench, has granted relief to an agriculturist from Kachchh, Gujarat, by condoning a 935‑day delay in filing his appeal, citing the COVID‑19 lockdown and bona fide reasons, and remanding his ₹60.46 lakh rural agricultural land capital‑gains case for fresh assessment.

The assessee, Babubhai Jesangbhai Marand, had sold 2.51 hectares of rural agricultural land for ₹60.46 lakh in FY 2011‑12, believing the transaction was exempt from capital‑gains tax under Section 2(14) of the Income Tax Act. Based on AIR data, the Assessing Officer reopened the case under Section 147 and completed an ex parte assessment under Section 144, adding ₹54.72 lakh as taxable capital gains and levying interest under Sections 234A and 234B.

When the assessee later discovered the order—after penalty and recovery proceedings began—he approached the Commissioner (Appeals) with an affidavit seeking condonation of delay. The CIT(A) dismissed the appeal in limine as time‑barred.

Before the Tribunal, counsel for the assessee, Sanjay Shah, argued that the delay was bona fide, caused by the assessee’s lack of tax awareness and the COVID‑19 lockdown.

On the other hand, the Department’s representative did not oppose condonation.

The Bench comprising Dr. Arjun Lal Saini (Accountant Member) and Dr. Dinesh Mohan Sinha (Judicial Member) observed that the delay was neither deliberate nor negligent and accepted the explanation as sufficient cause.

The Tribunal remanded the matter to the Assessing Officer for fresh consideration after giving the assessee a proper opportunity to be heard.

The tribunal observed that “We further, note that assessment was framed under Section-144 of the Act. Considering, this we remand back this matter back to the file of the AO for fresh adjudication after giving opportunity to the assessee. The assessee is also directed to ensure participation in the hearing as may fit by AO and do not seek adjournment, failing which AO shall pass appropriate order in accordance with law.”

Accordingly, the appeal of the assessee was allowed for statistical purposes.

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