Baldevbhai F Patel By Lhs Sanjay B Patel vs The Income Tax Officer, Ward 2(1)(1), ...
2026 Latest Caselaw 183 Guj

Gujarat High Court

Baldevbhai F Patel By Lhs Sanjay B Patel vs The Income Tax Officer, Ward 2(1)(1), ... on 21 January, 2026

Author: A.S. Supehia

Bench: A.S. Supehia

                                                                                                                NEUTRAL CITATION




                            C/TAXAP/20/2026                                     JUDGMENT DATED: 21/01/2026

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                                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                                     R/TAX APPEAL NO. 20 of 2026


                       FOR APPROVAL AND SIGNATURE:


                       HONOURABLE MR. JUSTICE A.S. SUPEHIA

                       and
                       HONOURABLE MR. JUSTICE PRANAV TRIVEDI
                       ==========================================================

                                   Approved for Reporting                      Yes            No
                                                                                          ✔
                       ==========================================================
                                     BALDEVBHAI F PATEL BY LHS SANJAY B PATEL
                                                      Versus
                                  THE INCOME TAX OFFICER, WARD 2(1)(1), AHMEDABAD
                       ==========================================================
                       Appearance:
                       MS VAIBHAVI K PARIKH(3238) for the Appellant(s) No. 1
                       DEV D PATEL(8264) for the Opponent(s) No. 1
                       ==========================================================

                         CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA
                               and
                               HONOURABLE MR. JUSTICE PRANAV TRIVEDI

                                                           Date : 21/01/2026

                                            ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)

1. Ms. Vaibhavi Parikh, learned advocate for the appellant has tendered draft amendment. The same is allowed in terms of draft. To be carried out forthwith.

2. Admit. Mr. Dev Patel, learned Senior Standing Counsel waives service of notice of admission.

3. The following substantial question of law arise in the present appeal:

NEUTRAL CITATION

C/TAXAP/20/2026 JUDGMENT DATED: 21/01/2026

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(i) Whether, in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in not adjudicating upon the additional ground of appeal with respect to Motera Land being a rural agricultural land not exigible to tax by not being a 'capital asset' within the definition as prescribed u/s. 2(14) of the Income Tax Act, 1961?

4. At the outset, learned advocates appearing for the respective parties submitted that the matter may be remanded to the Tribunal in light of the order dated 27.02.2024 passed in Tax Appeal No. 767 of 2023 arising from the order dated 06.01.2021 in case of son of the present appellant.

5. It is submitted that this Court while setting aside the common order dated 06.01.2021 which was passed by the Income Tax Appellate Tribunal, 'C' Bench, Ahmedabad under Section 260A of the Income Tax Act, 1961 (for short 'the Act'), has remanded the matter on an identical issue and hence it is urged that the matter may be remanded.

6. Under the circumstances, pari materia substantial question of law which are already answered by the Coordinate Bench in the judgment dated 27.02.2024 in Tax Appeal No. 767 of 2023 in case of the son of the present appellant, relating to the very same land, this Court is inclined to pass similar order. The Coordinate Bench has held thus:

NEUTRAL CITATION

C/TAXAP/20/2026 JUDGMENT DATED: 21/01/2026

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"11. In view of the above facts emerging from the record and on perusal of the impugned orders passed by the Tribunal, it appears that the Tribunal has not considered the nature of the land situated at Motera as to whether the same would be agricultural land as per the provision of section 2(14) of the Act or not. In such facts, we deem it fit to remand the matter of the appellant to the Tribunal to decide only the issue qua the nature of the land situated at Motera as to whether such land is an agricultural land as per the provision of section 2(14) of the Act or not?

The appeal is accordingly disposed of."

7. Hence, we adopt the reasoning of the Coordinate Bench and pass the following order:

In view of the above facts emerging from the record and on perusal of the impugned orders passed by the Tribunal, it appears that the Tribunal has not considered the nature of the land situated at Motera as to whether the same would be agricultural land as per the provision of section 2(14) of the Act or not. In such facts, we deem it fit to remand the matter of the appellant to the Tribunal to decide only the issue qua the nature of the land situated at Motera as to whether such land is an agricultural land as per the provision of section 2(14) of the Act or not?

8. The appeal is accordingly disposed of. The substantial question of law is answered accordingly.

(A. S. SUPEHIA, J)

(PRANAV TRIVEDI,J) SAJ GEORGE/SUPPL BRD/ 6