ITAT confirms Rs. 1.45 Crore Income Tax Addition as Short-Term Capital Gain in Taxpayer's Non-Agricultural Land Sale [Read Order]

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) upheld an Income tax addition of Rs. 1.45 crore as short-term capital gain from the taxpayer’s sale of non-agricultural land. Despite the appellant's argument that the land was purchased on behalf of a company and a development agreement was executed, the tribunal found no merit. \r

The bench ruled that the appellant purchased the land in his own name and transferred possession to the company for a significantly lower consideration than the government valuation. Section 50C of the Income Tax Act was deemed applicable, justifying the addition. The tribunal dismissed the appeal, affirming the CIT(A)'s decision to uphold the capital gain addition. \r

Mr. Mahita Nair represented the revenue in the proceedings.