Land fraudulently sold for Rs 6.82 crore cash
In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Ahmedabad awarded Rs 6.82 crore to Mr Patel after his land was fraudulently sold for a large sum of money. The land, situated in Hanspura Village, was originally purchased by Patel and his friends in 2005. On July 25, 2014, a land grabbing gang sold Patel's land for Rs 6.82 crore in cash, but they forged his signature on the sale deed and did not use his PAN number.
Mr Patel became aware of the fraudulent sale in December 2015 and filed a case against the land buyers in civil court, which is currently pending in the Gujarat High Court.
During the tax assessment proceedings, the Income Tax Assessing Officer (AO) added Patel's income, treating the entire proportionate sale proceeds of Rs 3.41 crore as his income. This assessment was completed on September 25, 2021. However, on April 21, 2026, Mr Patel won the case in ITAT Ahmedabad. The ITAT held that the sale deed was void due to non-payment of consideration and fraud exercised by the defendants in the registration of documents.
The tribunal also criticized the Income Tax Department for not investigating the source of payment by the buyers.
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