TaxTMI 
TaxTMI 
TaxTMI 
2023 (5) TMI 1362
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.... Resolution Panel-2, Mumbai-1 ["learned DRP"], under section 144C(5) of the Act for the assessment year 2015-16. 2. In this appeal, the assessee has raised the following grounds:- "1. On facts, in circumstances of the case and in law, re opening of assessment, under section 147 is bad in law assessment, under section 147 is bad in law. 2. On facts, in circumstances of the case and in law, the Hon. Dispute Resolution Panel-2, Mumbai erred in confirming addition of rent for alternative accommodation of Rs. 8,93,672/- to the total income of the appellant. 3. On facts, in circumstances of the case and in law, the Hon. Dispute Resolution Panel-2, Mumbai erred in confirming addition of corpus/monetary consideration of Rs. 64,00,000/- to th....
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....7. The case of the assessee was reopened under section 147 of the Act on the basis of the information that pursuant to the Re-development Agreement between MIG CHS (Bandra East), Group-IV Ltd and M/s Keystone Realtors Pvt. Ltd. (Confirming Party) and M/s Rustomjee Constructions Pvt. Ltd. (Developer) on 17/09/2010, the assessee, being a member of the society, received a total payment of Rs. 74,98,179 (i.e. Rs.64 lakhs as corpus, Rs.10,85,679 as rent and Rs.12,500 as shifting allowance) which has not been offered for taxation and thus has escaped assessment. Accordingly, notice under section 148 of the Act was issued and served on the assessee on 31/03/2021. In response to the said notice, the assessee filed his return of income on 17/09/2021....
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....its directions dated 26/10/2022 issued under section 144C(5) of the Act, the learned DRP, inter-alia, rejected the objections filed by the assessee as regards the addition of Rs.64 lakhs. Further, pursuant to the issuance of notice of enhancement, the learned DRP rejected the contention of the assessee that assessee's share is only limited to Rs.1,31,800 already disclosed in the return of income and directed the AO to enhance the total income of the assessee by the balance amount of rent received of Rs.8,92,672. In conformity with the directions issued by the learned DRP, the AO vide impugned final assessment order dated 15/11/2022 passed under section 147 r/w section 144C(13) of the Act made the addition on account of corpus money of Rs.64....
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....ning and handing over to the Society the consent letter. Out of Rs.80 lakhs, the assessee received Rs.16 lakhs in the financial year 2013-14. As per the Revenue, the balance amount of Rs.64 lakhs was received by the assessee in the year under consideration. Since this amount was not considered as income by the assessee in his return of income by treating the same as capital receipts, reassessment proceedings were initiated in the case of the assessee and vide assessment order passed under section 147 r/w section 144C(13) of the Act, the aforesaid receipt of Rs.64 lakhs was treated as taxable in the hands of the assessee as 'Income from Other Sources'. As per the assessee, the corpus amount is paid to the society/members during redevelopment....
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....ardship caused to flat owners on redevelopment, impugned amount has to be treated as capital receipt simplicitor which as per Section 2(24)(vi) of the Act is not taxable as income of the assessee. In this regard, we find it profitable to reproduce para 3.2 of the order of ITAT Mumbai Bench in the case of Jitendra Kumar Soneja (supra), which reads as under:- "3.2 Nothing contrary was brought to my knowledge on behalf of Revenue. Facts being similar, so following same reasoning, I find that consideration for which the amount has been paid by the developer are, therefore, not relevant in determining the nature of receipt in the hands of the assessee. In view of these discussion, in my considered view, assessee could not be said to be of reve....
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....at for the period of 34 months and on the basis of Rs.205 sq. ft. per month of the existing carpet area of the members existing flat for the remaining period of 10 months. Thus, the assessee was entitled to an amount of Rs.52,73,298 for the first 34 months and Rs.18,59,350 for the next 10 months. Accordingly, in the year under consideration, the assessee received alternative accommodation rent of Rs.10,85,679 for the 1st block of 7 months. As per the assessee, he distributed this amount amongst the brothers and sisters as per the Will of his father. Since the property is ancestral in nature, the rent received was divided amongst the family (6 sons and 4 daughters) as per the aforesaid Will. Accordingly, in its return of income, the assessee....