ITAT Ahmedabad backs taxpayer who earned Rs 8.75 crore capital gains but filed no ITR

The ITAT’s decision hinges on how tax authorities proceeded

An ITAT Ahmedabad ruling favoured a man from Bharuch, Gujarat, who sold two agricultural plots for Rs 8.75 crore and claimed capital gains. Though he paid no income tax and did not file an ITR, the Income Tax Department issued a notice. The tribunal set aside the action based on the notice and process rather than the gains alone.